3 Minutes
SHIB technical snapshot: a year-long range and a tightening pennant
Shiba Inu (SHIB) has spent much of the year oscillating inside a clearly defined trading range, repeatedly testing a resilient resistance level at the top and finding steady support at the bottom. That sideways market structure remains intact, but recent intraday action shows price compressing into a pennant pattern around the Point of Control — the price area where trading volume is most concentrated. As that apex draws near, traders are positioning for a potential, high-volatility breakout.
Key technical signals
- Range-bound market: SHIB continues to trade between established range-high resistance and range-low support, defining the macro context for shorter-term setups.
- Pennant formation: Price compression into a narrowing apex is forming a pennant, accompanied by declining volume — a classic consolidation before a directional move.
- Bullish bias: The pattern has produced consecutive higher lows within the pennant, indicating accumulation and an underlying tilt toward upside continuation if momentum returns.
Why the Point of Control matters
The Point of Control (POC) sits squarely within the pennant’s apex, making the current area one of elevated liquidity and volume concentration. In crypto markets this often precedes decisive moves: when price resolves from a high-liquidity area, breakouts (or breakdowns) tend to produce larger, sustained swings. For SHIB, a breakout above the pennant with expanding bullish volume would be a technically validated signal that could push the token back toward the range high.
Volume: the missing confirmation
Volume is the critical confirming variable. The volume profile’s recent decline reflects the expected compression phase inside the pennant. However, a credible breakout requires a clear surge in buying volume. If bullish volume accelerates as SHIB tests and clears the pennant apex, traders can interpret that as conviction for a move toward the range-high resistance.
What traders should watch next
Expect short-term volatility as SHIB approaches the pennant’s completion. Key triggers to watch are a clean break above the pennant with rising volume and follow-through buying that respects the former resistance as new support. Conversely, failure to ignite bullish volume could result in another rotation to the lower bound of the range. Risk management remains essential, as crypto price action can flip quickly.
In summary, Shiba Inu’s technical structure currently favors a bullish breakout scenario if volume confirms. The pennant around the Point of Control, coupled with higher lows, sets the stage — but buyers must provide the momentum through increased volume to sustain a rally toward the range high.
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