SHIB Price Analysis: Why Is Shiba Coin Inu Holding Back $0.000035-Bound Breakout

SHIB Price Analysis: Shiba Inu Coin shows readiness to break out, however, due to the generally sluggish outlook experienced by larger cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH), it has been forced to oscillate between support at $0.000025 and resistance at $0.00003. SHIB price upholds a green daily candle during US business hours on Tuesday.

The second-largest meme coin hovered at $0.000026. Bulls have recouped the losses experienced in the last 24 hours, affirming the positive outlook for this week.

As the trading volume nears the $1 billion mark, interest in SHIB is bound to grow. This could increase the chances of a breakout above $0.00003 and subsequently to $0.000035.

SHIB Price Analysis As Bollinger Bands Signal Breakout

Shiba Inu Coin has continued to oscillate in a ranging channel for 45 days. Support at $0.00002 kept SHIB within acceptable levels, preventing panic selling among investors.

Another stronger support was established along the ascending trendline. Moreover, Shiba Inu’s position above the 200-day Exponential Moving Average (EMA) backs the uptrend despite the correction from the Q1 peak at $0.000038.

Now that Shiba Inu Coin has climbed above two other critical EMAs—the 20-day and the 50-day, the path of least resistance is gradually shifting upwards.

Shiba Inu Coin price chart | Tradingview

The Bollinger Bands hint at a breakout in the coming days. However, due to the lack of immediate liquidity amid high volatility and profit-taking, SHIB could keep ranging ahead of the breakout.

Should the price breach the first solid hurdle around $0.00002, a stronger breakout above $0.00003 will emerge. Investors sitting on the sidelines may flock into the market, creating FOMO and escalating the breakout eyeing $0.000035. Shiba Inu Coin can achieve a new milestone above the Q1 peak in June, setting the pace for the bull run.

Nevertheless, a market downturn is never too far in the volatile crypto market. Therefore, a new downtrend may start to form if Shiba Inu drops below the 20-day and 50-day EMAs. Below the trend line, a firmer bearish grip could trigger a larger sell-off, resulting in another sweep through support areas $0.00002 and $0.00002.

Fundamentals Back Shiba Inu Coin Potential Uptrend

A solid support area as highlighted by IntoTheBlock runs from $0.000024 and $0.000025. The large number of addresses that bought 47.8 trillion SHIB tokens in the range will be looking for higher prices. This means they are unlikely to sell, further propping Shiba Inu Coin for a massive breakout.

SHIB IOMAP model stats | IntoTheBlock

The same IOMAP model reinforces the bullish thesis emphasising weaker resistance zones. With a break above $0.000028, Shiba Inu can start a major rally as Q2 comes to an end.

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