If This Happens, Shiba Inu Price Could Double Soon
May 20 2024 - 9:00AM
NEWSBTC
Last week, Shiba Inu (SHIB) emerged from a bull pennant formation
on its daily chart, signaling the potential for a significant price
increase. Currently, SHIB’s price is at a critical juncture as it
undergoes a retest of the breakout level. If this retest is
successful, it could lead to considerable gains. Shiba Inu Price
Could Double If This Happens The bull pennant is a continuation
pattern that typically signifies a strong uptrend following a
period of consolidation. In the daily chart, SHIB/USD showcases a
classic bull pennant formation. This pattern consists of two
converging trend lines forming a small symmetrical triangle,
following a significant price increase. The pole of the pennant
represents the initial sharp rise from late February to early
March, while the pennant itself formed from March through May. The
upper trendline of the pennant acted as resistance multiple times,
while the lower trendline provided support just as often. The
breakout above the upper trendline occurred on Wednesday last week,
and SHIB is currently in a retest phase. This retest is crucial to
confirm the validity of the breakout. A successful retest, where
the price finds support at the upper boundary of the pennant, could
signal a strong continuation of the prior uptrend. Related Reading:
Shiba Inu Price Makes Decisive Move: Is Now The Ideal Time To Buy?
The key price level to watch is currently around $0.00002350.
Further important price levels to monitor include the resistance
levels at $0.00002482, which coincides with the 0.236 Fibonacci
retracement level, and the next resistance levels at $0.00002881,
$0.00003204, $0.00003527, and $0.00003987. These levels represent
the 0.382, 0.5, 0.618, and 0.786 Fibonacci retracement levels,
respectively, and are critical targets if the uptrend continues. On
the support side, the immediate level to watch is $0.00002220,
which aligns with the recent pennant’s lower boundary. Further
support can be found at the 200-day EMA, currently at $0.00001854,
and the 0 Fibonacci retracement level at $0.00001836, marking the
lowest point of the recent consolidation phase. Moreover, the
20-day EMA at $0.00002399 and the 50-day EMA at $0.00002418 are
crucial for SHIB as they present the next resistance levels. SHIB
is currently trading slightly above its 20-day EMA but below the
50-day EMA, indicating mixed short-term momentum. Related Reading:
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The Relative Strength Index (RSI) stands at 48.74, close to the
neutral 50 mark, suggesting that SHIB is neither overbought nor
oversold. This neutral stance provides room for potential upward
movement without being hindered by overbought conditions. Volume
analysis shows a gradual decline during the pennant formation,
which is characteristic of this pattern. A significant increase in
volume upon a successful retest would be a strong confirmation of
the bull pennant. The recent breakout and the current retest phase
are critical to watch. A successful retest with increased volume
would likely validate the bull pennant pattern and signal the
continuation of the uptrend. Potential price targets for SHIB based
on the bull pennant, assuming a successful breakout and
continuation of the bull pennant pattern, can be estimated based on
the height of the initial flagpole. The flagpole, representing the
initial sharp rise from approximately $0.00001 to $0.000036, gives
a height of around $0.000026. Adding this to the breakout point at
$0.00002436, the target price for SHIB is approximately
$0.00005036. Featured image created with DALL·E, chart from
TradingView.com
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