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Shiba Inu (SHIB) has recently demonstrated a promising technical setup, closing a weekly candle above a critical support level and signaling potential for a significant price increase.
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The token’s price is advancing toward the upper Bollinger Band on the weekly chart, indicating a possible surge if momentum sustains.
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According to COINOTAG, “The recent breakout above the 20-week moving average and the bounce from the demand zone suggest a renewed bullish trend for SHIB.”
Shiba Inu (SHIB) shows strong technical signals with a weekly close above key support, hinting at a 20% rally as it approaches the upper Bollinger Band.
Shiba Inu’s Technical Setup Indicates Potential 20% Upside
Shiba Inu’s recent weekly candle close at $0.00001334 marks a critical juncture, positioning the token above a well-established support zone between $0.00001200 and $0.00001300. This range has consistently acted as a demand area over the past months, providing a solid foundation for price rebounds. The current price action is notable for its clean bounce off the lower boundary of this range, accompanied by a close above the 20-week moving average for the first time in two months. These factors collectively suggest a strengthening bullish momentum that could propel SHIB toward the upper Bollinger Band, currently near $0.00001554.
Volatility and Momentum Indicators Point to Renewed Buying Interest
The Bollinger Bands on the weekly timeframe are beginning to widen after a prolonged period of consolidation, signaling a potential increase in volatility. Historically, SHIB has tended to reach the upper band during breakout phases, which aligns with the current technical setup. If this pattern holds, the token could experience an approximate 20% price increase, approaching its April highs. Importantly, the recent breakout also invalidates a short-term bearish trendline dating back to May, which further supports the bullish thesis. Market participants should monitor volume levels closely, as sustained buying pressure will be essential to maintain this upward trajectory.
Support Zone and Moving Averages Provide Strong Foundation
The $0.00001200 to $0.00001300 demand zone has repeatedly served as a reliable support area for SHIB, with multiple successful retests reinforcing its significance. The recent weekly close above the 20-week moving average adds another layer of technical validation, indicating that the token is regaining strength after a period of sideways movement. This confluence of support levels reduces the likelihood of a sharp reversal and enhances the probability of a sustained rally. Traders and investors should consider this setup as a potential entry point, especially if accompanied by increased volume and positive market sentiment.
Market Outlook and Key Levels to Watch
While the bullish scenario appears promising, it is crucial to remain vigilant of resistance levels near the April highs around $0.00001550. This area previously acted as a ceiling for SHIB’s price, and overcoming it will require robust buying momentum. Additionally, the mid-band area of the Bollinger Bands, which has historically presented some overhead resistance, now appears less obstructive due to tighter consolidation. A successful breach of these levels could pave the way for further gains, while failure to hold above the current support zone may signal a return to consolidation or a potential pullback.
Conclusion
Shiba Inu’s recent technical developments highlight a compelling setup characterized by a strong support zone, a breakout above the 20-week moving average, and expanding Bollinger Bands signaling renewed volatility. If the current momentum continues and volume supports the breakout, SHIB could realize a 20% price increase, approaching its previous highs. Investors and traders should monitor key resistance levels and volume trends to gauge the sustainability of this bullish move. Overall, SHIB appears positioned for its most technically sound run in months, offering a noteworthy opportunity for market participants.
