As a researcher with extensive experience in technical analysis and cryptocurrency markets, I find the current situation of Shiba Inu (SHIB) intriguing. The bull pennant formation on its daily chart is a continuation pattern that often signals a strong uptrend following consolidation. Given SHIB’s recent breakout above the upper trendline of this bull pennant, I believe there is potential for considerable gains if the retest of the breakout level is successful.
Last week, Shiba Inu (SHIB) broke free from a bullish pennant pattern on its daily chart, indicating a strong possibility for substantial price growth. At present, SHIB’s value is at a crucial stage as it attempts to reconfirm the breakout point. A successful retest could result in notable price increases.
Shiba Inu Price Could Double If This Happens
As a researcher studying financial markets, I’ve come across various chart patterns that can provide insights into market trends. One such pattern is the bull pennant, which is typically indicative of a strong uptrend following a period of consolidation. In the case of SHIB/USD on the daily chart, you can observe a classic example of this formation.
The resistance line drawn through the peak of the pennant was repeatedly tested, causing price declines. Conversely, the support line at the base of the pennant was frequently visited and bolstered price advances. Last Wednesday saw a significant break above the resistance line, leading to an ongoing retest phase for SHIB. The success of this retest hinges on whether the price can hold at the upper boundary of the pennant. A successful retest could be an indicator of a robust continuation of the previous uptrend.
Keep an eye on the significant price mark of approximately $0.00002350 at present. Other noteworthy price thresholds to keep track of are the resistance levels at $0.00002482, aligning with the 0.236 Fibonacci retracement level. Subsequent resistance levels can be found at $0.00002881, $0.00003204, $0.00003527, and $0.00003987. These levels correspond to the 0.382, 0.5, 0.618, and 0.786 Fibonacci retracement levels respectively, making them crucial targets should the upward trend persist.
As a researcher studying the price movements of a particular cryptocurrency, I would focus on two key support levels. The first is located at $0.00002220, which aligns with the lower boundary of the recent pennant formation. Additional support can be found at the 200-day Exponential Moving Average (EMA), currently sitting at $0.00001854. Lastly, there is the 0 Fibonacci retracement level, which marks the lowest point of the recent consolidation phase and is located at $0.00001836.
As an analyst, I’d point out that the current price of SHIB is hovering around $0.00002399, which serves as its 20-day Exponential Moving Average (EMA). Meanwhile, the 50-day EMA sits at $0.00002418, acting as the next significant resistance level for SHIB. At present, the crypto’s price is marginally above the 20-day EMA but remains below the 50-day EMA. This situation suggests a mix of short-term momentum with some upside potential and downward pressure.
As a crypto investor, I’d interpret the Relative Strength Index (RSI) of SHIB being at 48.74 as a sign that the token isn’t heavily bought or sold yet. Being close to the neutral 50 mark indicates no extreme buying or selling pressure. This neutral position offers an opportunity for potential price increases without the restriction of overbought conditions.
As a researcher studying market trends, I’ve observed that volume analysis reveals a progressive decrease during the development of a pennant formation. This gradual decline is a typical feature of this technical chart pattern. However, a substantial increase in trading volume following a successful retest would serve as strong evidence supporting the bullish interpretation of the pennant. Keeping a close eye on the ongoing breakout and the subsequent retest phase is essential, as a successful retest accompanied by heightened trading activity could validate the bull pennant pattern and indicate the resumption of the uptrend.
As a researcher studying the Shiba Inu (SHIB) cryptocurrency’s price patterns, I can propose an estimation of potential price targets based on the bull pennant formation. If this pattern successfully breaks out and continues, the height of the initial flagpole provides valuable insight. The flagpole, which marks the sharp rise from roughly $0.00001 to $0.000036, indicates a height of approximately $0.000026. By adding this value to the breakout point at $0.00002436, I arrive at an anticipated price target for SHIB around $0.00005036.
Read More
Sorry. No data so far.
2024-05-20 16:16