Flag Pattern Hints 18% Breakout Rally

Shiba Inu Price Prediction: The Bitcoin price struggling to surpass $38,000 resistance has influenced the broader cryptocurrency market, including Shiba Inu (SHIB). This memecoin recently formed local top at $0.00000965 and is currently experiencing a consolidation phase within two converging trendlines since last week. This formation is indicative of a bullish flag pattern, which could potentially assist SHIB in surpassing the $0.00001 barrier.

Also Read: SHIB Burn Rate Rockets 1300% As Shiba Inu Price Plunges

Sideways Action Poised to Trigger Decesive Rally

• A bullish pattern hints at a higher potential of uptrend continuation in the SHIB pattern.
• A breakdown below the lower support trendline would reflect weakness in bullish momentum.
• The intraday trading volume of the Shiba Inu coin is $208.5 Million, showing a 28.5% gain.

Source- Tradingview

In the past 30 days, the Shiba Inu price has experienced considerable growth, rising from $0.00000612 to its current trading price of $0.00000863, marking a 30% increase. However, this upward trend encountered resistance around the $0.00000965 level, coinciding with broader market uncertainty. 

This has led to a temporary pullback to around the $0.000008 mark, aligning with the 50% Fibonacci retracement level. In the context of a long-term bull run, this level of retracement is often seen as a healthy correction.

Analyzing the 4-hour timeframe chart reveals that this consolidation phase is forming a bullish continuation pattern known as a “flag.” Typically, this pattern involves a short period of sideways movement before a decisive upward breakout. If SHIB breaks out from the upper trendline of this flag pattern, it could target an initial goal of $0.0000150, representing an 18% potential gain

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SHIB vs DOGE Performance

Source: Coingape| Shiba Inu Vs Dogecoin Price

Comparing the last three months’ price behavior of SHIB with its rival memecoin, Dogecoin (DOGE), it appears that DOGE has shown stronger momentum, consistently creating new highs and lows. In contrast, SHIB is struggling to break past the $0.00000969 high. Given the bullish market sentiment, theDogecoin price might present a more favorable opportunity for a long position.

• Relative Strength Index: Although the RSI is forming lower lows, which indicates seller pressure, the intact uptrend in SHIB’s price suggests a higher likelihood of continued upward movement.
• Bollinger Bands: The converging bands on the Bollinger Bands indicator signal that the market is in a correction phase, which is typical before a potential breakout or trend continuation.