Shiba Inu Price Eyes 65% Rally With This Breakout

During Tuesday’s U.S. market session, the crypto market witnessed a drop in volatility as Bitcoin struggled to break the $100k barrier. The lack of initiation of buyers has triggered selling pressure in altcoin, especially in the memecoin sector. Thus, the Shiba Inu price reverts from the multi-year resistance trendline, projecting the potential for a sharp correction. Can buyers counter-attack?

Currently, the SHIB price trades at $0.00002775 with an intraday loss of 7.25%. According to Coingecko data, the asset market cap is at $16.3 Billion, while the 24-hour trading volume is at $2.7 Billion.

A downsloping trendline drives the major downtrend in Shiba inu price
The memecoin is 12% away from the challenge of the multi-year resistance trendline.
The SHIB price pullback coinciding with a rise in large transactions hints at a surge in whale interest.

Shiba Inu Price Retests Pennant Pattern Amid Investor Accumulation

Over the last 2 days, the Shiba Inu price plunged from $0.000033 to $0.000027, projecting a 16.4% loss. Amid this pullback, the meme cryptocurrency witnessed a 355% increase in large transactions and 87% in daily transactions, highlighted by crypto enthusiast Mijosh.

This surge reflects growing investor interest, suggesting potential accumulation during the dip in anticipation of a price recovery.

$SHIB has just risen to the top 10 ALT coins by market cap.@intotheblock shows that Shiba Inu has a 355% increase in large transactions over the last 24 hours

Daily transactions have also risen by 87% pic.twitter.com/6rbm9mu64l

— Mijosh.₿- (R•W•A)💜💜 (@Mijosh_) December 3, 2024

Currently trading at $0.000028, SHIB is retesting the recently breached trendline of a pennant pattern. This pattern, characterized by a sharp price movement (the flagpole) followed by a symmetrical triangle or wedge, typically signals a temporary pause before a continuation of the trend.

Historical data reveals that SHIB initiated its November rally with a similar breakout, hinting at the potential for another upward move.

Pennant Pattern Signals Potential Breakout for SHIB

If the pennant pattern holds true, the Shiba Inu price could bounce 12% and challenge the downsloping resistance trendline at $0.0000315. This resistance, in place since November 2021, has been a key driver of the ongoing downtrend. A decisive breakout above this level, confirmed by a daily close, could trigger a trend reversal, potentially propelling SHIB by 62% to reach $0.000045.