This Classic Breakout Calls for a Shiba Inu Reversal
Shiba Inu (SHIB) was one of the top gainers from yesterday's rally in the cryptocurrency market. The cryptocurrency gained over 13% after breaking above a critical descending trendline.
Shiba Inu's price is set for a short-term rally after breaking above the descending trendline that connects the lower highs starting from the all-time high of $0.000088 but faces short-term resistance at $0.000039. The trendline breakout gives hope to the bulls that the current rally can continue. This is a significant breakout because it was used to frame the sell-off from the all-time high. In this regard, the current breakout might signal a shift in the market sentiment and a possible reversal.
MACD Bullish Divergence
Additionally, another classic technical pattern known as the MACD bullish divergence adds confluence to the bullish case scenario. The MACD bullish divergence happens when the price is making lower lows, but the indicator is making a higher low, signaling that the selling pressure is cooling off.
More, the SHIB price is also bouncing off of a key long-term support level at $0.000026.