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Technical analysis shows that Shiba Inu is currently at a critical crossroads, one that could lead to a massive 400% upside breakout. According to an analyst on the TradingView platform, the current price action of Shiba Inu indicates a complete outbreak of a bull flag formation. If this interesting projection were to materialize as expected, it would put the meme-inspired cryptocurrency on a steady path towards a return to its current all-time high.
Shiba Inu price waiting to break above the bull flag
On the TradingView platform the analyst goes (without_worries) revealed an interesting angle after analyzing Shiba Inu price action since the beginning of the year. The analyst highlighted a significant correction by examining the 5-day candlestick price chart, noting that Shiba Inu has returned about 75% from its yearly high of $0.00003595. This correction was characterized by a sequence of lower highs and lower lows, creating a bull flag pattern.
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The analyst pointed out several reasons why going long Shiba Inu now presents a favorable opportunity. The most critical factor is the breakout above the bull flag pattern, which often signals the continuation of an uptrend after a period of consolidation.
Moreover, the Relative Strength Index (RSI) has also given a bullish signal. For the first time since April, the RSI has broken above a downtrend line and is now showing a meaningful uptrend. The RSI currently stands at 54.7 on the 5-day chart, reflecting the inflows trend among investors.
While there is still the possibility of SHIB retesting the bull flag pattern, the analyst emphasized that if SHIB experiences a second impulsive move, it could trigger a repeat rally similar to that seen during the last major breakout. During that previous rally, SHIB rose around 400% to reach a peak of $0.00003595.
If history were to repeat itself under similar circumstances, Shiba Inu could see its price rise above the current 2024 peak and reach a price target between $0.00006204 and $0.000074.
Bullish predictions for SHIB
The Shiba Inu price action for the past seven days was characterized by intense volatility. From October 7 to 10, SHIB price trended downward, reaching a low of $0.00001613. Since then to the time of writing, SHIB has gained about 11.84%, although it has been rejected several times at $0.00001809.
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At the time of writing, SHIB is trading at $0.00001809. Another analyst, Javon Marks, reflects the return to SHIBs highest ever. According to Marks’ analysis, based on a previous breakout of a bearish wedge pattern, SHIB is now open for a run-up to $0.000081.
Featured image created with Dall.E, chart from Tradingview.com
