Shiba Inu's price has drifted downwards since the May 24 breakout, finding support level at the symmetrical triangle’s upper trend line pattern and resistance at the 50 four-hour SMA. A four-hour close above the moving average should ignite a new price rally of at least 50% from the price at the time of writing.

Shiba Inu price contraction leads to price expansion

The symmetrical triangle pattern level, sometimes referred to as a coil, tends to form during a trend as a continuation pattern. The work by Edwards and Magee, “Price Technical Analysis of Stock Trends” (1948), suggests that 75% of symmetrical triangle patterns are continuation patterns and the remaining are reversals. The reversal is challenging to analyze and frequently has false breakouts. 

From May 19 until May 24, SHIB price created a symmetrical triangle pattern level with two reaction highs and three reaction lows and a measured move target of $0.00001450, or a price gain of 50%.

The May 24 breakout to the SHIB upside went against historical precedent, but it has not failed as SHIB remains above the triangle’s upper trend line level and well above the triangle’s lower trend line.

Shiba Inu's price rests at the 50 four-hour moving average and below the declining trend line level from the May high. A four-hour close above the two points of resistance support level will enable the SHIB price to gain traction and rally towards the original measured move target of $0.00001450. It would be more than a 50% gain from the price at the time of writing.

The SHIB rally will encounter resistance at the May 24 high at $0.00001204, the May 16 low at $0.00001238, and the 23.6% Fibonacci retracement level of the decline beginning on May 10 at $0.00001325.

If the cryptocurrency complex continues to rebound and FOMO seizes Shiba Inu's price, SHIB could reach the 38.2% retracement level at $0.00001793.

It is essential not to overlook the consecutive inside days on the bar price chart. An important quote to keep in mind when evaluating Shib price action is that  “price contraction leads to price expansion.”

A decline below the triangle’s lower trend line level, currently at $0.00000722, would signal the end of the rally attempt and introduce a bearish narrative for Shiba Inu's price. A decline below the May 19 at price of $0.00000607 would confirm the negative outlook.

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