Crypto investor SHIB KNIGHT sees a potential breakout for Shiba Inu, predicting the breakout to spark a 130% price rally.

The analyst made this projection in a recent post on X. His analysis points to a reversal in the market, suggesting a possible surge to $0.00005 upon breakout confirmation on the weekly chart.

$SHIB 2H Chart is good and market is reversing.

But I’m keeping an eye on weekly chart, which can pump Shib to 0.00005 after breakout confirmation pic.twitter.com/Xqpkq3Tdhl

— $SHIB KNIGHT (@army_shiba) July 16, 2024

The chart provided by SHIB KNIGHT reveals a descending triangle pattern. As SHIB approaches the triangle’s apex, a potential breakout looms. This pattern indicates a possible move upwards if the price breaches the triangle’s upper boundary.

According to the analyst, the target price post-breakout could mark a 130.10% increase from the breakout point. SHIB KNIGHT emphasized the need to monitor the weekly chart closely, as it will provide a broader perspective on whether the breakout is part of a larger trend reversal.

Key Support and Resistance Levels

Meanwhile, the In/Out of the Money Around Price (IOMAP) analysis offers further data into the distribution of SHIB token holders based on their buying prices. Significant support levels are evident in the price ranges of $0.000016 to $0.000019, where a high concentration of addresses bought SHIB below the current price.

Specifically, support levels are strong in the $0.000016 to $0.000017, $0.000017 to $0.000018, and $0.000018 to $0.000019 ranges. This buying interest around these levels suggests substantial support, potentially limiting the downside if prices fall.

Market Conditions Are Favorable

In a recent analysis, market analyst Javon Marks also discussed Shiba Inu’s potential for a breakout, projecting an imminent upsurge. Marks, who accurately predicted SHIB’s rally to $0.000045 earlier this year, now foresees a potential return to its all-time high. 

His analysis in February identified a breakout pattern from a downtrend channel, leading to the price surge. Marks points to a hidden bullish divergence and favorable market conditions, suggesting that SHIB could reach new heights in the upcoming uptrend.