SHIB is targeting a 90% bullish breakout as the price forms a bull flag pattern
SHIB is currently operating in a very strong bull market in 2021 and an important trend continuation pattern on the longer time frame chart is showing 90% more upside ahead of us.
In particular, SHIB is up more than 1,250% year-to-date (YTD), hitting an annual high of $ 0.00003528 in October. The cryptocurrency then stumbled across a stop-loss sentiment, causing a 41.5% correction to $ 0.0000206.
SHIB 4-hour chart | Source: Tradingview
But the bulls began to amass SHIB near the aforementioned lows. As a result, the price rallied thereafter, rising more than 55% to $ 0.000032 and experiencing another sell-off. In general, SHIB continues to make lower highs and higher lows in the following sessions, forming a triangle structure like a bull flag.
Analysts see the pennant as a bullish continuation pattern. That is, its formation, along with decreasing volume, tends to push the price in the previous direction, equal to the height of the previous rally, also known as the flagpole.
So it looks like SHIB formed the same structure.
12-hour SHIB / USDT price chart and establish Bull flag | Source: TradingView
The height of the flagpole is approximately $ 0.000245. Therefore, if the SHIB breaks out of the top of the bull flag (the level where the top and bottom trendlines converge), the next target will be around $ 0.000052, which is about 90% higher.
Bull flags are notoriously unreliable technical indicators, at least loudly research conducted by Cody Hind of Samurai Trading Academy in 2020 based on his review of 10 years of market data and over 200,000 trading structures.
He found that the bull flag successfully met the price target 54.87% of the time.
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The SHIB price nearly doubled in October, in part due to Tesla CEO Elon Musk’s cryptic testimony of the Shiba-Inu project, reports of whale purchases, and the growth of a decentralized exchange.
As reported by Cointelegraph, Musk posted a photo of a Shiba Inu puppy on October 4th. The billionaire’s tweet coincided with a 330% increase in SHIB price over the next 4 days, reminding of how it affected the DOGE price earlier this year.
Bullish prices are also based on reports of whale buying activity. The October 5 report highlighted that an unidentified company bought 6.2 trillion SHIB for approximately $ 44 million in late September.
Meanwhile, the ShibaSwap decentralized exchange has seen an increase in the amount held by liquidity pools. According to ShibaSwap, the total blocked value (TVL) of ShibaSwap contracts as of October 18 was $ 411.42 million, compared to $ 253.41 million earlier this month. DeFi Lama.
TVL ShibaSwap up to October 18, 2021 | Source: Defi Lama
At its peak in July 2021, ShibaSwap managed $ 1.76 billion through its liquidity pool.
Ishan Arora, a hedge fund manager affiliated with Tykhe Block Ventures, said that SHIB emerged as a product of the crypto-meme craze and that most people bought these tokens on the advice of some KOLs.
Arora cautioned investors about the risks of throwing money on such a fad, but mentioned DOGE for its ability to generate incredible returns earlier this year.
“The original DOGE investors did pretty well last year, so it’s not as straightforward as most people would like it to be.”
Meanwhile, crypto data tracking service Santiment has found that the SHIB whale trade has surged over $ 100,000 in the past 24 hours. Note that their demeanor is usually bullish on SHIB.
Whale trade SHIB over 100.000 Dollar | Source: Santiment
“When these transactions are done in batches, the price usually goes up,” the platform emphasized in a note tweets today.
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According to Cointelegraph