- SHIB develops a bullish reversal pattern.
- Shiba Inu has been experiencing a tight consolidation, possibly fueling a breakout.
- The anticipated goal is near the ATH.
For around a week and a half, the famous meme coin Shiba Inu has witnessed a tight consolidation around a vital support level near the 88.6% Fibonacci retracement at $0.00003200. Likewise, SHIBA is probably getting ready for a massive price surge that could be higher if the broader market catches a bid.
With Shiba Inu’s price going sluggish for a while, hodlers are becoming frustrated by the day. The Relative Strength Index on the daily chart hardly strayed from the final oversold level in a bull market (40).
Moreover, the Composite Index has been in a neutral position since Dec 5. Based on the patterns, SHIB’s market consolidation could be seen as the start of a significant price spike. One of the most in-demand reversal patterns in Point and Figure Analysis is the Shakeout pattern. To note, this pattern does not come up often and is only valid if an instrument is currently in a broader uptrend.
In addition, the Bullish Fakeout Pattern follows after a long column of Os drops below a multiple bottom by two at the very least, but not over 3 Os. The hypothetical long setup for SHIB is a buy stop at the 3-box reversal ($0.00004000). The stop loss is a 5-box stop, and a profit target is set at $0.00007750–which was derived from the Vertical Profit Target Method.
On the other hand, SHIB can only move just one more O below $0.00003000, otherwise, the trade is invalidated and Shiba Inu would most probably retest the $0.00002000 level. At the time of writing, SHIB trades at a bearish price of $0.00003228 according to CoinGecko.
Disclaimer: The views and opinions expressed in this article are solely the author’s and do not necessarily reflect the views of CoinQuora. No information in this article should be interpreted as investment advice. CoinQuora encourages all users to do their own research before investing in cryptocurrencies.
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