Shiba Inu (SHIB) traders have identified a notable technical pattern on the cryptocurrency’s chart, which some believe could signal an imminent upward move and the potential for SHIB to “delete a zero” from its price in the days ahead.
Technical formation points to upward breakout
Analysts and traders observed that Shiba Inu recently formed a bull flag following a sharp price rally. A bull flag is a chart formation that develops after a strong, rapid increase in price, followed by a period of consolidation where prices drift lower. This pattern is often interpreted as a precursor to further upward movement, particularly if the asset breaks above the flag’s resistance with convincing volume.
Crypto trader SHIB Knight commented on the pattern, stating, “SHIB is making Bull Flag. Good chance to delete a zero in the coming days.”
SHIB Knight highlighted a bull flag formation on the chart, suggesting Shiba Inu has a strong chance to reach a higher price level soon.
In crypto trading terminology, “deleting a zero” means that the token’s price advances far enough to remove a decimal place, such as climbing from $0.0000051 to $0.00001. At the time of reporting, Shiba Inu was trading at $0.000005162, up 3.35% in the past 24 hours, though still down 4.25% over the week.
Market conditions and key price levels
Shiba Inu’s current price action follows a brief market rally triggered by a short squeeze last week. Despite the current lull, major digital assets continued to display relative strength, with much of the crypto market flashing green over the previous day.
Open interest across the cryptocurrency market remained steady at about $137.42 billion, but trading volume dipped nearly 14%. This suggests most traders are adopting a wait-and-see approach, holding off on new long or short positions pending clear directional signals.
SHIB managed to reverse a recent three-day decline that saw the token hit a low of $0.00000488 on August 30. The cryptocurrency gained for a second consecutive day, touching an intraday high of $0.00000523. The next technical resistance for SHIB stands at the daily 200-period moving average (MA 200), now at $0.00000537.
If Shiba Inu can decisively break above the MA 200, analysts point to successive targets at $0.00000553, then $0.00000575, and further to $0.00000623. Surpassing these resistance levels could set the stage for a run toward $0.00001017, which would see SHIB “delete a zero” and mark a notable psychological achievement for traders.
| SHIB Price Level | Status/Target |
|---|---|
| $0.00000488 | Recent low (Aug 30) |
| $0.00000523 | Intraday high |
| $0.00000537 | MA 200 resistance |
| $0.00000553 | Next target |
| $0.00000575 | Further resistance |
| $0.00000623 | Higher resistance |
| $0.00001017 | Potential zero removal |
Korean premium turns positive
A potentially bullish signal emerged alongside price developments, as the “Korea premium” shifted into positive territory. This metric measures the price difference between cryptocurrencies traded on South Korean exchanges versus those on other global platforms.
Blockchain data platform CryptoQuant reported that the Korean premium had registered a negative reading for the longest duration in its history before recently flipping positive. Analysts view this as a sign that South Korean investors, who have historically been an influential segment within the cryptocurrency market, are returning to active trading.
Mini dictionary: Korea premium, a market indicator showing the difference in cryptocurrency prices between South Korean and international exchanges, often used to gauge local demand in South Korea’s crypto market.
According to CryptoQuant, the return of the Korea premium to positive territory may reflect renewed interest and capital inflows into digital assets from the region.
