Shiba Inu (SHIB) seems to be preparing for a bullish breakout as a falling wedge pattern begins to form.
The price of SHIB has been trending lower inside an area defined by two contracting trendlines while accompanying a decline in trading volume. That shows that investors have been less concerned about the downtrend.
As a result, falling wedges typically provide an ideal springboard for an upside break once the price closes above the structure’s upper trendline. On Thursday, SHIB showed signs of following a similar topside break.
SHIB/USDT daily price chart featuring a falling wedge. Source: Fiery Trading
Notably, the token briefly closed above the falling wedge’s upper trendline, hitting an intraday high of $0.00003290. The upside move raised anticipation that SHIB would continue its trend higher in the coming sessions, with Fiery Trading analysts noting that an ongoing bullish retracement across the crypto market would further boost the altcoin’s upside bias.
The analysts said,
“With the entirety of the crypto market seeing strong bullish moves, it’s to be expected that SHIBA will follow. This token is currently trading near the top resistance of the pattern so that a breakout might occur soon. Look for a daily close above the resistance.”
The next upside target for SHIB
A decisive move above the falling wedge’s upper trendline could have traders eye for a bullish confirmation near $0.00003929.
Simply put, if the price of SHIB breaks above $0.00003929, a previous level of resistance, traders may end up placing upside bets toward the level that comes at a distance equal to the maximum gap between the upper and lower trendline ($0.00004240).
SHIB/USDT daily price chart featuring a falling wedge setup. Source: TradingView
As a result, the potential falling wedge breakout could put the price of SHIB en route to $0.00008026, as shown in the chart above. Conversely, a pullback move from the wedge’s upper trendline could have SHIB retest the structure’s lower trendline around $0.00002350 support.
Potential Robinhood listing backs the current rally
SHIB’s bullish setup emerged primarily after it rebounded by nearly 30% in three days.
At the core of SHIB’s sharp retracement were a few fundamental catalysts. These include speculation about the token’s listing on Robinhood, a zero-commission trading app with over $14 million in average daily volume.
SHIBA INU ROBINHOOD LISTING SAID TO COME AS EARLY IN FEB
this is about 6 months too late
— zerohedge (@zerohedge) January 12, 2022
Additionally, SHIB also rallied higher in line with a bounce-back across crypto markets on Wednesday, with top digital asset Bitcoin (BTC) rebounding by more than 12% and Ether (ETH) rising by nearly 18% in the past three days.
While it is likely that SHIB’s price boomed due to excessive speculation, Vladimir Kardapoltsev, CEO of blockchain wallet company PointPay, noted that its potential to log more gains in 2022 was huge due to SHIB investors’ recent holding pattern.
“It is worth mentioning that in just over five weeks, the average holding duration for Shiba coins on Coinbase Global has climbed from 6 to 32 days,” he told Cointelegraph, adding that “people have been hoarding SHIB because of Shiba Inu’s willingness to become more than just a Dogecoin-like meme token.”
Kardapoltsev said,
“There are several critical criteria that investors and potential buyers should consider when determining the price of SHIB in 2022. Shibarium, the gaming video game Oshiverse, and ShibaSwap have all contributed to Shiba Inu’s surging pricing, placing it ahead of competitors such as Dogecoin, which is still a meme currency play with minimal development.”
Source: Cointelegraph
