Shiba Inu Sits on Major Support: Here is Why Breakout Could Be Close

Source: ETHNews Original Title: Shiba Inu Sits on Major Support: Here is Why Breakout Could Be Close Original Link: Shiba Inu (SHIB) is compressing inside a falling wedge pattern, a structure traditionally associated with bullish reversals after extended downtrends.

Fresh analysis highlights how SHIB is now sitting directly on wedge support, raising the stakes for a potential breakout attempt in the coming days.

Wedge Support Holds After Months of Decline

The chart analysis shows SHIB respecting the wedge’s lower boundary for several consecutive touches. This structure has developed since early summer, forming a series of lower highs and lower lows that converge into a tightening zone.

Each time SHIB approached this support band, buyers stepped in, signaling demand despite the broader downtrend. The latest touch of support once again triggered a bounce, keeping the wedge structure fully intact.

Breakout Potential Strengthens as Compression Tightens

A breakout above the descending resistance trendline would complete the bullish wedge pattern. Historically, this structure often precedes strong upside continuation as momentum rotates upward from oversold conditions.

Key elements highlighted in the analysis include:

• The falling wedge structure forming over several months
• Multiple successful defenses of the support baseline
• A tightening range that usually precedes a volatility expansion

These conditions suggest SHIB is nearing a decisive moment, and a confirmed breakout could open the door to a sharp relief rally.

Short-Term Price Action Shows Stabilization Near $0.0000083

The 2-hour chart reinforces this setup. SHIB is currently trading around $0.00000836, stabilizing after a steep decline earlier in the week. Volume remains moderate, and the price continues to hover near a local support zone, reflecting a pause rather than continued breakdown.

The most notable recent move occurred on December 2-3, when SHIB surged sharply from the lows before retracing. That upswing demonstrated that buyers are still responsive during volatility spikes, a factor that often precedes wedge breakouts.

What Comes Next for SHIB?

If SHIB breaks above wedge resistance, the pattern projects a potential move back into the mid-December price range, setting the stage for an early-2026 recovery attempt. However, a failure to hold wedge support would invalidate the bullish structure and risk deeper downside.

For now, the structure remains intact, support is holding, and traders across the market are watching closely to see whether SHIB finally unlocks the breakout momentum this long-standing wedge has been building.