Shiba Inu's price has recently broken out of a bearish pattern formation, introducing the potential for a new rally. SHIB price escaped above a critical resistance trend line that has acted as a possible turning point for the dog coin's disappointing returns since the May crypto market crash.

Shiba Inu has surged over 60% since its local bottom recorded on June 22. SHIB price has been locked in a descending triangle pattern formation since May 19 on the 12-hour chart, as SHIB price bulls were unable to lift prices higher against the overpowering distribution of the sellers.

Shiba Inu price uptrend limited by obstacles

SHIB overcoming the descending trend line pattern of the triangle pattern gives Shiba Inu price a measured target of 50% at $0.00001270 level, the highest point of the chart pattern. 

The prevailing direction for Shiba Inu is bullish. However, the meme-based coin could face several obstacles before continuing its rally. SHIB price could see a retest of the descending trend line pattern that acted as strong resistance for the coin prior to heading higher. 

Shiba Inu's price struggled to reach the 100 twelve-hour Simple Moving Average, which is acting as a strong resistance level for SHIB. The meme token further slumped below the 50% Fibonacci extension level at a price of $0.00000906 as a result. 

Only a candle close above the $0.00000906 level would open up the possibility of the canine-themed token to attempt reaching the 100 twelve-hour SMA at a price of $0.00000970 before meeting the next resistance level at the 61.8% Fibonacci extension at $0.00000991. 

Should SHIB price action work in favor of the bulls, Shiba Inu would also need to overcome the 70.5% Fibonacci extension level at a price of $0.00001053 before the bullish thesis of a 50% breakout can be expected. 

An unanticipated increase in selling pressure could drive down Shiba Inu. Still, SHIB price would likely find support level at the hypotenuse of the descending triangle at $0.00000838 and at the 38.2 Fibonacci retracement level at price of $0.00000822. 

Failing to hold above the aforementioned critical trend lines of defense could spell further trouble for the SHIB bulls. However, an outstanding support level is found at the 50 twelve-hour SMA, coinciding with the 27.2% Fibonacci retracement and the start of the demand zone at $0.00000744.

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