Shiba Inu Pattern Hints At Bullish Breakout Ahead

April 23, 2024
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Following a phase of trading in the red zone, which erased the gains Shiba Inu had accumulated from the last week of February to the first week of March, the beloved token of the Shiba Ecosystem now appears primed for a bullish breakout.

The recent pattern suggests a significant increase in value may be imminent, which could boost the investments of the Shib Army, particularly those that heavily accumulated during the dip.

Following the much-anticipated Bitcoin Halving event, Shiba Inu entered a period of trading in the green zone, experiencing an impressive surge of over 18% in value. However, despite this notable double-digit gain, it fell short of recovering from the crypto asset’s previous losses, which had seen a significant decline of nearly 45%.

Nevertheless, the recent climb in SHIB’s value seems to indicate just the beginning of a potentially more substantial price leap. Analysts and traders are taking note of the coin’s recent pattern, suggesting a promising outlook for future price movements.

Among those observing the market is the self-proclaimed alpha caller and investor, @HolaItsAk47, who took to X (formerly Twitter) to share insights on the recent pattern observed in Shiba Inu. Ak47 highlighted the formation of a bullish Falling Wedge pattern, adding to the growing optimism surrounding SHIB’s potential for a bullish breakout.

She specifically identified a falling wedge pattern within the $SHIB/USDT trading pair, observed over a 12-hour timeframe. This technical pattern is notable for often heralding a bullish breakout, indicating potential upward movements in the value of SHIB against USDT.  

She also advised traders and market observers to closely monitor this development, as it could signify a shift in market sentiment and present opportunities for strategic trading decisions. “The $shib/usdt pair is showing a falling wedge pattern on the 12-hour timeframe. This often precedes a bullish breakout, signaling potential gains ahead. Keep an eye on it,” the tweet, which comes with an image of the trading pattern, read.

In the context of trading, a falling wedge pattern is a technical analysis pattern that appears on price charts. It is formed when the price of an asset moves within a narrowing, downward-sloping range, creating converging trendlines. The upper trendline slopes downwards, indicating the downward pressure on the asset’s price, while the lower trendline slopes upwards, suggesting a weakening of the downward trend.

Traders often interpret a falling wedge pattern as a bullish signal. This is because, despite the overall downtrend indicated by the upper trendline, the lower trendline’s upward slope implies that selling pressure is diminishing. As a result, traders anticipate a potential breakout to the upside, leading to a bullish reversal or significant upward movement in the asset’s price.

Shiba Inu is currently trading at $0.000027, with a 24-hour trading volume of $761,525,707. This reflects a 2.33% increase within the day, marking a significant 23.60% spike over the past seven days and a 3.58% increase in value over the last 30 days.

As of data from CoinMarketCap at around 6 p.m. ET on Monday, SHIB boasts an impressive market cap of $15,970,153,522. Its circulating supply stands at 589,289,410,812,691 SHIB coins

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