- Shiba Inu price continues to consolidate the August 7-8 burst higher as the action begins to take the shape of a cup-with-handle base.
- Descending parallel channel’s upper line remains a technical obstacle as the consolidation matures.
- SHIB holds the 50-day simple moving average (SMA), creating a higher probability of continuing the rally.
Shiba Inu price is up 4.25% this week after rising 15.53% last week, maintaining the upward trajectory as it consolidates the gains. The emerging cup-with-handle base improves the probabilities that SHIB will resume the rally and test the previously suggested targets of $0.00001204 and $0.00001214.
Shiba Inu price consolidates above essential support
Since the close above the 50-day SMA on August 7, Shiba Inu price has opted to tread slightly higher on a daily closing basis, frustrated by the descending parallel channel’s upper line. However, the SHIB action could be shaping the handle of a bullish cup-with-handle base that began in late June and marked a low in July.
The measured move of the SHIB cup-with-handle base, as calculated from the handle high to the cup low, is almost 36%, and it projects a Shiba Inu price target of $0.00001207. The target matches perfectly with the previously mentioned price targets of the May 24 high at $0.00001204 and the May 20 high at $0.00001214.
To realize the 36% measured move, Shiba Inu price needs a few more days of consolidation above the 50-day SMA to create better symmetry, which should include a daily SHIB close above the channel’s upper line around $0.00000765.
Once Shiba Inu price has triggered the cup-with-handle base at $0.00000887, it will encounter some resistance at the June 29 high of $0.00000962, followed by a layer of swing highs at $0.00000986 and $0.00001048.
SHIB/USD daily chart
A daily close below the 50-day SMA at $0.00000722 would be a blow to the emerging Shiba Inu price structure, increasing the pressure on SHIB to test the instrumental support at the May 19 low of $0.00000607. This level guided Shiba Inu price from July 22 to August 6.
Additional support materializes around the confluence of the descending parallel channel’s midline at $0.00000548 and the June 12 low of $0.00000550.
The Shiba Inu price event on August 7 and August 8 of 40% may have been a transformative moment for the meme token after spending weeks hovering above the crucial May 19 low. Now, SHIB is positioning for higher prices in a constructive base with a concise entry price, presenting a unique opportunity for SHIB speculators to participate in a 36% rally.
Here, FXStreet's analysts evaluate where SHIB could be heading next as it tests critical resistance.