Shiba Inu Coin Eyes Voluminous Returns Amid Breakout Retest

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In the constantly evolving world of cryptocurrency, each week can bring new victories and challenges, and last week was a momentous one for Shiba Inu (SHIB). The coin was observed to have emerged from a bullish pennant formation on its daily chart, an activity signaling an opportunity for a marked surge in price. At present, SHIB’s trajectory stands at a crossroad as it undertakes a retest of the breakout level, a success of which could pave the way for voluminous returns.

For those who are not familiar, a bullish pennant typically is a continuation pattern, hinting at a vigorous uptrend following a momentary consolidation. The daily chart of SHIB/USD impeccably captures such a pattern, formed by two converging trend lines that shape a compact symmetrical triangle post a noteworthy uptick in price. The flagpole of the pennant stands as a testimony to the initial sharp escalation from late February to early March. The formation of the pennant was observed between March and till present.

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This pennant formation’s upper trendline played the role of resistance multiple times, while the lower trendline emerged as a support. The triumph over the upper trendline was witnessed last Wednesday, with SHIB now undergoing a retest phase. The results of this retest are indispensable to confirm the legitimacy of the breakout and a successful retest could see a robust continuation of the earlier uptrend.

The spotlight now shifts to the pivotal price level of approximately $0.00002350. Other key levels to keep an eye on are resistance levels at $0.00002482—aligned with the 0.236 Fibonacci retracement level—and subsequent resistance levels at $0.00002881, $0.00003204, $0.00003527, and $0.00003987. These levels map the 0.382, 0.5, 0.618, and 0.786 Fibonacci retracement levels sequentially, posing as critical goals if the uptrend persists.

Conversely, attention must be accorded to the immediate support level at $0.00002220, which syncs with the recent pennant’s lower boundary. Further support can be found at the 200-day EMA, currently residing at $0.00001854, and the 0 Fibonacci retracement level at $0.00001836. This marks the lowest valuation of the latest consolidation phase.

Equally important for SHIB are the 20-day EMA at $0.00002399 and the 50-day EMA at $0.00002418, which represent the upcoming resistance levels. Presently, SHIB’s performance stands slightly over its 20-day EMA but trails under the 50-day EMA, indicating a mixed momentum in short-term.

The entertaining world of numbers and charts also reveals the Relative Strength Index (RSI) for SHIB to be at 48.74, nearing the neutral 50 mark. This neutral position suggests that SHIB is neither overbought nor oversold, thereby leaving room for a potential increase without the impediments of overbought conditions.

The volume analysis also provides interesting insights, indicating a step-by-step decline during the pennant formation, a manifestation characteristic of this pattern. A marked rise in volume in the event of a successful retest would act as a solid endorsement of the bullish pennant. The recent breakout and the ongoing retest phase are vital to keep an eye on. A victorious retest coupled with an amplified volume is poised to corroborate the bullish pennant pattern and signal the resumption of the uptrend.

Potential price targets for SHIB based on the bullish pennant, provided the breakout is a success and the bullish pennant pattern continues, can be roughly estimated on the basis of the initial flagpole’s height. The flagpole, depicting the first sharp rise from approximately $0.00001 to $0.000036, has a height of about $0.000026. Adding this to the breakout point at $0.00002436, the projected target price for SHIB comes out to be approximately $0.00005036. This indeed is an exciting time for SHIB and the world of cryptocurrency.