Shiba Inu price on the verge of 42% upswing as SHIB bulls prepare for a major breakout

Shiba Inu price is preparing for a significant ascent as it nears a crucial line of resistance. If SHIB slices above $0.00003902, the canine-themed cryptocurrency could be headed for a 42% climb. 

Shiba Inu price eyes $0.00005435 next

Shiba Inu price has formed a descending parallel channel on the daily chart, suggesting an overall bearish outlook. However, since SHIB is nearing the upper boundary of the governing technical pattern, the token could be headed for a 42% bounce toward the November 30 high at $0.00005435.

The first area of resistance for Shiba Inu price is at the topside trend line of the parallel channel, coinciding with the 38.2% Fibonacci retracement level at $0.00003902. Only if SHIB manages to break above the aforementioned headwind will the dog-themed token target the bullish target.

Additional obstacles will emerge for Shiba Inu price at the 50-day Simple Moving Average (SMA) at $0.00004099, then at the 50% retracement level at $0.00004194. If buying pressure increases, SHIB will face challenges at the 61.8% Fibonacci retracement level at $0.00004486 and at the 78.6% Fibonacci retracement level at $0.00004902.

If a spike in buy orders occurs, Shiba Inu price may even surge past the optimistic target at $0.00005435 and aim for bigger aspirations at the November 5 high at $0.00006547.

SHIB/USDT daily chart

However, if selling pressure increases, Shiba Inu price may test the first line of defense at the 100-day SMA at $0.00003612. Additional support may appear at the 23.6% Fibonacci retracement level at $0.00003541, then at the 21-day SMA at $0.00003468.

Shiba Inu price may discover additional footholds at the December 6 low at $0.00003269 and at the December 4 low at $0.00002952, coinciding with the middle boundary of the prevailing chart pattern.