Shiba Inu’s Bullish Cues Could Set Up A 330% Price Target
NOIDA (CoinChapter.com) — Shiba Inu’s bullish cues could spell a 330% price target for Shiba Inu (SHIB) prices. If traders play their cards right, SHIB price action could help them net impressive gains.
According to blockchain data provider IntoTheBlock, 327,200 addresses have acquired 110.27 trillion SHIB between $0.000026 and $0.000051, with a break-even point close to the current price range.
A surge above $0.00005 could double the SHIB value, marking a 100% increase and pushing these addresses into profitability. However, if these addresses start booking profits, it could spell trouble for the memecoin.
Additionally, a dramatic increase in token burns has removed over 81 million SHIB from circulation, enhancing the scarcity and potentially driving up the price.
Moreover, a partnership with PayPal to facilitate SHIB purchases via Moonpay could expand its user base in the US, potentially increasing demand.
Bullish Cues For SHIB Coming From Technical Setup
Meanwhile, SHIB price has formed a bullish technical setup called the ‘bull flag pattern.’
A bull flag pattern forms when a crypto token’s price experiences a near-vertical rise, creating the flag pole. This pattern commonly emerges in assets that are in a strong uptrend.
Following the steep ascent, the asset undergoes a period of consolidation, which creates the flag of the pattern. Despite the initial strong rally, the price holds steady as buying pressure persists. Typically, a breakout from this consolidation phase triggers another significant uptrend.
The pattern reaches completion when the price breaks out from the flag area, effectively resuming the prior upward trajectory. Traders project the breakout’s price target by adding the length of the flag pole to the breakout price level. This calculation helps in predicting the potential continuation of the price.
According to the rules of technical analysis, if the token confirms the technical pattern, the SHIB price might rally over 330% to reach the theoretical price target near $0.000086.
However, it is unlikely that the memecoin will rocket to the theoretical price target after a bullish breakout from the pattern. Yet, the pattern could attract more buyers to the market, which would, in turn, help the Shiba Inu coin confirm the pattern and register some gains before correcting.
EMA Resistance Too Much For SHIB Rally
The Shiba Inu token started the weekend with great excitement, rising with the wider crypto market. The bearish pressure in the supply zone in the region around the 20-day EMA (red wave) and 50-day EMA (purple wave) trendlines rebutted SHIB price’s bullish upside move.
SHIB price dropped nearly 3% on May 7 to reach a daily low near $0.000023, as the bullish pressure was not enough to overcome the EMA resistance confluence. However, if SHIB price starts rallying due to some one or more bullish cues, the token might rally to the resistance near $0.000027.
Breaking and consolidation above the immediate resistance would likely confirm the flag pattern. The bullish cue might help SHIB price target the resistance near $0.0000306.
On the other hand, if SHIB price fails to start a bullish rally, the token could drop to the 100-day EMA (blue wave) support near $0.000022. Breachng the immediate support might force the memecoin’s price to test its 200-day EMA (green wave) support near $0.0000181 before recovering.
Failure of the immediate support might invalidate the bullish cue for Shiba Inu coming from the technical setup.
The relative strength index for SHIB remained neutral, with a score of 44.05 on the daily charts.
The post Shiba Inu’s Bullish Cues Could Set Up A 330% Price Target appeared first on CoinChapter.
Filed under: Bitcoin - @ May 8, 2024 1:17 am