Gushiken Yona
A widely followed crypto analyst is pointing to a classic technical pattern on the Shiba Inu (SHIB) charts that he says could send the price of the popular token soaring more than 135%. The prediction hinges on a “bullish divergence” that suggests downward momentum may be waning, setting the stage for a significant reversal.
The analysis came from crypto analyst @JavonTM1, who shared his findings in a post on X on July 11. He presented a detailed price chart for Shiba Inu ($SHIB) and offered a specific, data-driven forecast based on the patterns he identified.
He laid out the potential target with precision. “In a nearer term and by confirmed data, the $0.000032s are levels to come in for $SHIB (Shiba Inu) in response to a bullish divergence,” he wrote. Reaching this price from its current levels would represent a substantial gain for the token.
Decoding the Bullish Divergence on the Chart
The chart provided by JavonTM1 is central to his thesis. It displays two key components: the price action of SHIB in the upper section, and a technical indicator known as the MACD (Moving Average Convergence Divergence) in the lower section.
A bullish divergence occurs when the price of an asset prints a lower low, while the indicator below it simultaneously prints a higher low. On the supplied chart, the crypto analyst marked this exact phenomenon.
The Shiba Inu price is shown making two distinct descending bottoms, forming a pattern of lower lows. However, during the same period, the MACD indicator below shows two ascending bottoms, forming higher lows.
In technical analysis, this discrepancy is often interpreted as a signal that the bearish, or downward, momentum is weakening. Even though the price is still falling, the underlying momentum is beginning to shift, which can foreshadow a potential trend reversal to the upside.
“Only the Start”: A Look at the Potential Upside
The crypto analyst emphasized that hitting this initial target might only be the beginning. He framed the more than 135% move not as a ceiling, but as a potential floor for a larger recovery.
“Just that move itself is over 135% and could be only the start of a larger bullish reversal,” he added in his post.
This analysis provides a specific, technical counterpoint to the broader market sentiment, which has seen SHIB and many other altcoins trade sideways. For traders who rely on chart patterns and indicators, a bullish divergence is a significant event. The focus will now be on whether the price action confirms the signal identified by the analyst, potentially kicking off the significant rally he has forecasted.
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Yona has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Daily is an official media and publication of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
