The upper level of the pattern is likely to be a source of resistance, while the lower one that of support. If the price manages to escape either of these boundaries, then it may be likely to experience a sustained move in that direction.
Parallel Channels come in a few variants. Channels that have their lines sloped upward are known as Ascending Channels, while those with trendlines pointing down are called Descending Channels.
In the context of the current topic, the third and simplest type of Parallel Channels is of interest: a channel that is parallel to the time-axis. This type of Parallel Channel corresponds to a phase of true sideways movement in the asset.
Now, here is the chart shared by Martinez that shows the Parallel Channel that the weekly price of Shiba Inu was stuck inside for the last few years:
As displayed in the above graph, the 7-day price of Shiba Inu retested the upper level of the Parallel Channel twice in 2024, but each time, the memecoin found rejection. During 2025, the cryptocurrency mostly consolidated near the midline of the channel, but the decline during the last quarter of the year meant that the coin plummeted toward the support line.
It now remains to be seen how Shiba Inu will develop in the near future, considering this development in its weekly chart.
SHIB Price
