Starting the year off strong, the Shiba Inu (SHIB) price rose almost 2% after a downtrend as analysts believed more was to come.
Amid the market turmoil, the token’s resilience has piqued the interest of investors and analysts, with many speculating that a massive breakout is brewing.
SHIB is trading at $0.00002136, with a circulating market cap of $12.58 billion and a 24-hour trading volume of $545.51 million. This increase in commercial activity means a renewed interest in the same areas.
The token’s ability to remain stable above important support levels speaks to the strong community support in this rally.
Now, analysts are looking at SHIB’s technical indicators and the price action signals that Shiba Inu could be headed for extended bullish momentum.
Analyst Javon Marks eyes breakout
The most notable analysis comes from renowned cryptocurrency analyst Javon Marks.
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Marks has identified a breakout trend in SHIB, with his analysis indicating that the token is poised to surpass $0.0001553, an ambitious target that would represent an upside of over 261% from current levels.
SHIB’s ability to maintain these recent gains also marks it, according to the analysis. Analyst Javon Marks believes that $SHIB (Shiba Inu) will give us special treatment as the price holds key post-breakout gains that could go much further.
However, Marks said he views the token’s slower price action as a positive sign, with continued consolidation potentially serving as a springboard for its next bull run.
According to Marks, this is the next critical resistance level, set at $0.000081. If this threshold is breached, Shiba Inu coin could target $0.0001553.
Such a move would be a watershed moment for the token, clearing another zero and potentially attracting a new wave of investors.
Shiba Inu Coin Technical Outlook
A closer look at the Shiba Inu charts will allow us to understand why there is some bullish sentiment.
Recently, we saw that the token is on the verge of breaking out of a significant bearish channel according to hourly charts, which could lead to a reversal in market sentiment.
What could make this breakout all the more interesting is the simultaneous formation of a hidden bullish divergence, as analyst Javon Marks said. This is a formation that generally precedes an uptrend.
SHIB price has remained in a consolidation range, so it is preparing for its next move. Now, investors have started accumulating, as suggested by the Money Flow Index (MFI).
This is a vital indicator that shows that buying and selling pressure has been moving in bullish trends. It appears that this rise in SHIB buying interest is in line with broader market sentiment turning positive for SHIB.
Consistently higher volumes also supported the demo’s continued rally. If the bullish momentum does not subside, SHIB will soon test key resistance levels indicated by analysts to break out.