Analyst Identifies Key Trading Setup for Shiba Inu in Current Price Range

• The analysis identifies a SHIB trading setup with a demand zone between $0.0000139 and $0.0000144
• Data shows a 0.84% rise in long-term Shiba Inu holders (over 1 year) and a decline in short-term traders (less than 1 month) by 3.12%
• A chart reveals that SHIB is exhibiting a descending triangle pattern

A technical analysis from SwallowAcademy identifies a significant trading pattern in Shiba Inu (SHIB), suggesting a possibly notable price movement.

Namely, the analysis identifies a SHIB trading setup with a demand zone between $0.0000139 and $0.0000144, where SHIB’s price at $0.0000145 (at the time of analysis) shows potential for a 10-20% increase to $0.0000159 based on historical rebounds from this zone.

Several technical indicators have been highlighted as well. For instance, the 50-period Exponential Moving Average (EMA) is currently around $0.000014266, with the 200-period EMA close to $0.000014561. Shiba Inu’s price is presently just under the 50 EMA but remains near the 200 EMA, and a move above these levels could be a signal for a bullish reversal.

Also, the Relative Strength Index (RSI) stands at approximately 46.92, which is slightly below the neutral 50 mark. This reading implies that the SHIB is in a neutral zone, a state often seen during periods of accumulation.

Then, there is data from IntoTheBlock showing a 0.84% rise in long-term Shiba Inu holders (over 1 year) and a decline in short-term traders (less than 1 month) by 3.12%. Once more, this points to a reduced sell pressure and a possible accumulation phase, aligning with the analyst’s bullish outlook.

Other analysis

While not specifically related to SwallowAcademy’s analysis, other examinations of SHIB’s price give additional merit to the said evaluation. 

For example, the crypto analyst Ali Martinez shared a chart that reveals SHIB exhibiting a descending triangle pattern, characterized by a series of lower highs converging towards a horizontal support line around $0.00001413. Such a pattern indicates a period of consolidation and yet another potential for a breakout.

In this particular situation, Martinez is expecting a 17% price move.

The descending triangle pattern is a common chart formation that often precedes a breakout, either upward or downward. As it stands now, most believe it will be a positive breakout and that Shiba Inu is bound for a considerable price increase. Still, it’s good to be careful, as the direction of the breakout typically depends on general market conditions and investor sentiment.