Shiba Inu (SHIB) Price On The Verge Of Major Breakout, Here’s Why
09 Abril 2024 - 9:00AM
NEWSBTC
Since reaching its peak for the year at $0.00004749 over a month
ago, on March 5, the price of Shiba Inu (SHIB) has fallen by
approximately 40%. Nonetheless, there may be brighter days ahead.
Following a meteoric rise of 390% in just eight days from the end
of February till the beginning of March, a period of consolidation
was inevitable for the SHIB price. However, this phase could be
drawing to a close. Shiba Inu Price About To Surge 65%? On the
daily chart, the meme coin is exhibiting a critical chart pattern
that suggests a significant price movement may be imminent. The
analysis of the daily SHIB/USD chart reveals the emergence of a
symmetrical triangle pattern. This classic chart pattern is
generally considered a continuation pattern, typically heralding an
uptick in volatility. Given that SHIB has been on a notably strong
uptrend, the momentum could swing back in favor of the bulls. Over
the past five weeks, the price of SHIB has been making a series of
lower highs and higher lows, which is evident from the converging
trend lines that are containing the price action. The apex of the
triangle is fast approaching, suggesting that a breakout is
imminent. This type of consolidation suggests market indecision,
and as the pattern reaches its conclusion, we can expect a
significant move in either direction. Related Reading: Crypto
Analyst Predicts Shiba Inu Price To Rise 5000% To $0.001 – Here’s
When The current price at the time of the analysis is $0.00002842.
Notably, the volume has been declining as the pattern developed,
which is typical during the formation of a symmetrical triangle and
further validates the pattern. Exponential Moving Averages (EMAs)
also paint a crucial picture. The 20-day EMA is flatlining,
suggesting a neutral short-term trend, while the 50, 100, and
200-day EMAs are all trending upward, providing strong support
levels. Particularly, the price is currently above the 20-day EMA,
which is positioned at approximately $0.00002817, and this level
could act as a strong support in the near term. The Relative
Strength Index (RSI) is hovering near the 52.40 level, which is
slightly above the midpoint of 50 that separates bullish momentum
from bearish momentum. The RSI level indicates a neutral stance in
the market momentum but leaves room for an upward push should the
market sentiment sway positively. Related Reading: Shiba Inu Fires
Up With 4,000% Burn – Price Rebound Coming? In terms of deriving
price targets from this pattern, technical analysts typically
measure the height of the triangle at its widest part and project
that distance from the point of breakout. If SHIB breaks above the
triangle, the price could surge, targeting the height of the
triangle, which could be in the region of the yearly high at
approximately $0.000048, considering the widest part of the
pattern. This would translate into a 65% price rally from the
current price. Conversely, a downward breakout could send the price
to test the $0.00001500 level, which would be the equivalent target
on the downside. It is important to mention that while symmetrical
triangles can lead to a substantial breakout, the direction is not
certain until a clear breakout occurs with an accompanying increase
in volume. Traders and investors need to watch for a daily close
outside of the triangle’s boundaries, with increased volume, to
confirm the direction of the breakout. Featured image created with
DALL·E, chart from TradingView.com
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