Bullish Chart Pattern for SHIB Suggests Its Rally May Continue
2022.07.19 18:10
Bullish Chart Pattern for SHIB Suggests Its Rally May Continue
- A technical chart pattern present on SHIB’s chart may suggest that SHIB’s price will continue to climb.
- SHIB’s price is in the perfect position to capitalize on the next leg.
- Should SHIB’s price produce a daily candlestick close below the $0.0000095 support level, the bullish thesis for SHIB will be invalidated.
Shiba Inu’s (SHIB) price is setting up for a bullish breakout, which may suggest that SHIB’s price will continue to climb. In addition, SHIB is in the perfect position to capitalize on the next leg up, which may result in an explosive move.
SHIB’s price is forming a trend continuation pattern called a bullish pennant, which comprises a flagpole and a pennant.
The pattern started forming between June 19 and June 25 following an explosive 34% move by SHIB. This move formed the flagpole and the consolidation in the form of higher lows and lower highs which created the pennant.
This bullish technical formation forecasts a 34% upswing to $0.0000154, obtained by adding the flagpole height to the breakout point at $0.0000116.
Something interesting to take note of is that SHIB’s price has pierced through the pennant’s upper trend line and has produced a daily candlestick close above it at roughly $0.0000116 – signaling a breakout. This serves as support for the bullish signal. However, investors should wait for the secondary confirmation which will be SHIB successfully retesting the pennant throwback support.
Should the retest hold, investors can expect SHIB’s price to reach its target at $0.0000154, especially if its price overcomes the closest hurdle at $0.0000139.
Although the bullish path for SHIB looks clear, a re-entry into the pennant will be an indication of weak buying pressure. In this scenario, if SHIB produces a daily candlestick close below the $0.0000095 support level, the bullish thesis for SHIB will be invalidated.
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