Shiba Inu price is approaching a critical technical zone after spending weeks consolidating in a descending triangle.
According to analysts, there is a possibility of a breakout, and it might lead to a rally to the price of $0.00001553.
Although the token bears are experiencing pressure in the short term, there are numerous bullish signals and long-term projections indicating that there is an impending reversal.
Shiba Inu Price Trades Near Apex as Breakout Builds
Shiba Inu price continues to hover around a crucial support level at $0.00001140, forming the base of a descending triangle.
This pattern, often viewed as a precursor to breakout moves, was highlighted by trader SHIB KNIGHT, who suggested that the chart has likely bottomed. To him, a triangle can only go upside down as it approaches the apex.
Source: SHIB KNIGHT, X
As of the latest hourly update from Shibburn, SHIB price traded at $0.00001113, down 3.60% over the past 24 hours.
However, within several weeks, this level of support has been maintained by the asset, which is also accompanied by the paradigm of volatility.
If the Shiba Inu price breaks above the declining trendline near $0.00001200, it may spark renewed buying interest.
In addition, SHIB price activity is also experiencing some form of compression with the slowing down of volatility and the formation of higher lows.
In the past, such a trend would frequently be a precursor to a big move, that is particularly when accompanied by a spike in volume.
Therefore, the coming days may determine whether SHIB price can begin a new upward leg or extend its consolidation.
Analyst Projects SHIB $0.00001553 Target
Meanwhile, prominent analyst Javon Marks continues to hold a bullish long-term view on SHIB price. He affirmed in a recent post that he is continuing to target $0.000081, a 609% move on current prices, using past historical trend breakout patterns.
Marks observed that the top memecoin has already exited a macro-level resistance trendline and is exhibiting one indication of stabilization following the breakout.
Source: Javon Marks, X
Additionally, he believed that if momentum sustains, Shiba Inu price could exceed his initial target and reach $0.00001553.
His fractal chart has shown the fractal trend where the earlier breakout waves had similar wave patterns. These waves, if repeated, suggest that SHIB price could revisit prior cycle highs.
However, for these projections to activate, SHIB price must reclaim levels above $0.00001450 and build consistent support there.
Until then, the market is in an anticipation phase where traders are awaiting early signs of confirmation by observing breakouts on lower time frames.
Shiba Inu Burn Rate Plummets as Market Sentiment Cools
According to Shibburn data, 101,213 SHIB tokens were burned in the past 24 hours, a decline of 89.88%.
In the last 7 days, fewer tokens were burned by only 62.3 million, or a decrease of 94.21%. These are among the lowest recorded figures this year.
Source: Shibburn, X
This decrease in burn activity indicates a decrease in participation of the network and deflation by users.
Shiba Inu price has historically shown stronger performance during weeks of high burn rate, though that correlation is not absolute. The current supply stands at 589.24 trillion SHIB, limiting short-term scarcity effects.
However, burn metrics tend to improve at times when the price is performing well. If Shiba Inu price breaks out of its current structure, it could revive transactional burns and restore on-chain momentum. Until then, low burn volumes may delay short-term catalysts.
Accumulation Phase May Support Breakout
In addition, even at a minimal price change, the chart indicated a consistent accumulation trend below the $0.00001200 resistance.
The retests of the horizontal support line have produced higher reactionary lows every time. This implies that buyers are coming in at higher levels, compressing the trading range.
If Shiba Inu price can breach the descending trendline, a move toward $0.00001400 becomes possible.
More than that, traders can aim at the zone of the $0.00001800-0.00002800 area and at the level of $0.000081.
Even though these targets are speculative, they correspond to historical cycles that occurred under the same technical formations.
Read the full article here
