Shiba Inu (SHIB) is currently forming a falling wedge pattern, a technical formation that often signals a bullish reversal following a prolonged downtrend. Recent analysis indicates that SHIB is resting directly on the wedge”s support, heightening the possibility of a breakout in the near future.
The chart analysis reveals that SHIB has repeatedly touched the lower boundary of the wedge over the past few months, establishing a pattern of lower highs and lower lows that converge into a narrowing range. Each time the price neared this support zone, buyers have stepped in, demonstrating ongoing demand despite the prevailing downtrend. The latest touch of this support has triggered another bounce, preserving the integrity of the wedge structure.
As the price action compresses within this pattern, the potential for a breakout becomes more pronounced. A move above the descending resistance line would confirm the bullish wedge pattern. Historically, such structures can lead to significant upward momentum as the market moves from oversold conditions.
Key aspects of the analysis include:
- The formation of a falling wedge over several months
- Multiple successful defenses of the support level
- A tightening price range that typically signals an upcoming volatility expansion
These factors suggest that SHIB is approaching a critical juncture, and a confirmed breakout could initiate a sharp relief rally.
In terms of short-term price action, SHIB is trading around $0.00000836, showing signs of stabilization after a steep decline earlier this week. Volume remains at moderate levels, and the price is hovering near a local support zone, indicating a pause rather than a continued downward trend.
A notable recent movement occurred between December 2 and December 3, when SHIB experienced a sharp increase from its lows before retracing. This surge revealed that buyers are still active during periods of volatility, a characteristic often witnessed prior to wedge breakouts.
Looking ahead, if SHIB manages to break above the wedge”s resistance, the pattern suggests a potential return to mid-December price levels, paving the way for a recovery attempt in early 2026. However, failing to maintain the wedge support could invalidate the bullish outlook, leading to deeper declines.
For now, the structure remains intact, and the support level is holding firm. Traders and market participants are closely monitoring SHIB”s movements to determine if it can finally unlock the breakout momentum that this long-established wedge has been building.
