Over the past month, Shiba Inu (SHIB) hit its highest point for the year at $0.00004749 on March 5. Since then, the price has dropped around 40%. Yet, there’s optimism for future gains. After an extraordinary surge of 390% in eight days from late February to early March, a price correction was expected for SHIB. However, this downtrend might be coming to an end.
Shiba Inu Price About To Surge 65%?
On the daily chart, the meme coin Shiba Inu (SHIB) is showing a notable chart pattern that may indicate a major price shift is coming up. This observation from the SHIB/USD daily chart reveals the development of a symmetrical triangle formation. This common chart pattern is often seen as a continuation pattern, often signaling an increase in market turbulence. Considering Shiba Inu’s robust uptrend, the bulls could potentially regain momentum.
For the past five weeks, SHIB‘s price has been forming a triangle pattern with decreasing highs and increasing lows, as shown by the converging trend lines. This indicates that the market is uncertain about which direction to go. The peak of this triangle is near, implying an imminent price breakout in either direction. Such consolidation often signals indecision in the market, so when this pattern concludes, we should prepare for a substantial price shift.
At the moment of examination, the price stands at an easy-to-grasp $0.00002842. It’s worth mentioning that the trading volume has been decreasing as the pattern unfolds, which is a common occurrence during the shaping of a symmetrical triangle and adds credibility to this pattern.
In simpler terms, the Exponential Moving Averages (EMAs) offer valuable insights. For instance, when the 20-day EMA remains unchanged, it indicates a short-term trend that’s neutral. On the other hand, if the 50-, 100-, and 200-day EMAs continue to rise, they serve as robust support levels. At present, the price hovers above the 20-day EMA, which is around $0.00002817, suggesting potential support in the upcoming days.
The RSI value is currently around 52.4, not too far from the 50 mark that signifies equal parts bullish and bearish forces. This RSI reading suggests a neutral market trend, but there’s potential for a rally if investor sentiment improves.
Technical analysts usually determine potential prices by measuring the maximum height of a triangle formation at its broadest point and then projecting that distance from where the triangle breaks out.
If SHIB moves beyond the triangle’s upper boundary, its value might significantly increase, potentially reaching the triangle’s peak. This peak could be around $0.000048, based on the triangle’s widest point. This price jump would represent a nearly 65% rise from the present price. Alternatively, if SHIB falls below the triangle, it may slide down to approximately $0.00001500, marking the target for a potential downturn.
Symmetrical triangles can result in significant price movements, but it’s essential to note that the direction isn’t clear until a definitive breakout takes place. The breakout’s direction remains uncertain until there is a daily closing price beyond the triangle’s boundaries and a noticeable increase in trading volume. Keep a close eye on these signs before making any investment decisions based on the potential triangle breakout.
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2024-04-09 17:10