Shiba Inu has witnessed a drop in price after a prolonged period of upward movement, surprising many who thought the price would continue to rise. In a new video from YouTuber Clay Bro, the analyst explains three reasons why Shiba Inu is on the verge of a massive rally. At the time of writing, Shiba Inu is trading at $0.00000851. The coin is down more than 20 percent in the past 30 days.
Symmetrical triangle pattern:
The weekly timetable chart reveals the formation of a symmetrical triangle pattern that has been in place for nearly a year. This pattern shows the convergence of trendlines, which accompany the current sideways trend. Despite a recent phase of correction, the coin’s price has fallen back to the pattern’s support, pointing to the potential for a bullish scenario. If the ascending trendline restores bullish momentum, it could push the price up to a substantial gain of more than 50% from its current level.
Accumulation on the main support area:
He said: “Right around this 800 points per mintmark is a hugely important fulcrum on which we are accumulating. By the time of going to press, the price of the Shiba Inu coin was trading at 865 points and is showing a near-term consolidation phase above the long-term support trendline.
According to him, sellers have repeatedly failed to push the price below this support line, reflecting aggressive accumulation. Such a breakout would be the start of a new bullish cycle within the pattern.
Bullish Momentum Indicator:
He said the Relative Strength Index (RSI) has turned bullish on the weekly chart for Shiba Inu. Despite a series of lower highs, the RSI slope showed a clear increase, indicating increasing buying pressure during the sideways trend. This bullish divergence increases the possibility of a reversal and an upside breakout of the triangle pattern.