SHIB Ignites After Smashing Key Resistance

The Dogecoin-killer meme cryptocurrency Shiba Inu (SHIB) is finally heating up after months of choppy trading. SHIB has decisively shattered a stubborn 11-week resistance level that had kept a lid on its price, unleashing bullish momentum not seen since its blistering rally in early 2022.

The breakout, which saw SHIB surge over 10% last week, is backed by strengthening fundamentals and technical indicators signaling the potential for much higher prices in the coming weeks and months.

Clearing a Make-or-Break Hurdle

According to data from crypto analyst Jake Wujastyk, SHIB has been stuck in a range since peaking near $0.000045 in early March. Each attempt to break out was met with stiff resistance from a descending trendline that acted as a rallying cry for sellers.

However, that all changed on May 20th when SHIB sliced through the trendline and horizontal resistance at $0.0000253 on high volume. This decisive move suggests the presence of strong buyer appetite that could propel SHIB towards its next big target at $0.0000315 – a 25% upside from current levels.

Bullish Forecasts Abound

Emboldened by the breakout, analysts are making increasingly bullish calls on where SHIB could be headed next. Javon Marks of The Crypto Basic sees SHIB staging a 210% rally to hit $0.000081 if the momentum continues. That would bring it just shy of its all-time high around $0.00008845 set in October 2021.

In Marks' most optimistic scenario, SHIB could skyrocket over 500% from here to reach $0.0001553 should it clear the $0.000081 hurdle.

At the time of writing, SHIB is trading at $0.00002519 – up 2.17% on the day amid a 34% spike in trading volume to $1.2 billion.

Signs of Accumulation

Digging into the on-chain data, there are signs that institutional money has been actively accumulating SHIB in recent months. Santiment's "Whale Transaction Count" metric, which tracks transactions over $100,000, shows consistent spikes when SHIB dipped between mid-April and late May.

This pattern indicates that deep-pocketed investors were taking advantage of the low prices during the consolidation period. Their doubling down lends further credence to the technical breakout now playing out on the charts.

A Risk to the Bullish Thesis

While the current setup looks overwhelmingly bullish for SHIB, analysts warn that the tide could turn quickly if the crypto market sentiment sours unexpectedly. Specifically, if SHIB breaks below $0.0000210 on daily closing basis, it would invalidate the entire bullish outlook by forming a fresh lower low.

Under that bearish scenario, Marks states SHIB could be in for a 20% plunge towards the next key support around $0.0000168. Traders would be wise to keep a close eye on the market dynamics and have a risk management plan in place.

For now, however, the path of least resistance for the Dogecoin-rival appears to be up as it basks in its latest breakout success. All eyes are on whether SHIB can keep building on its newly-minted bullish momentum.