Shiba Inu (SHIB) started the new week in the green as it continued its bullish retracement from last week’s low of $ 0.00002058.
SHIB price hit an intraday high of $ 0.00002907 on October 11, benefiting more than 40% from the current rally. Accordingly, the bullish Dogecoin-inspired meme cryptocurrency is stretching towards a technical resistance near USD 0.00002978, as shown in the graph below.
SHIB / USDT 4-hour chart | Source: TradingView
Extension of the rally in the near future?
The chart also shows the intention of traders to accumulate SHIB as the price tests the 20-4H exponential moving average (EMA 20-4H, blue wave) as support.
For example, the price fell more than 40% on Thursday when addresses worth 1 million – 10 million SHIB sold over 31 billion tokens, most of it in 6 months according to Santiment data. However, the price rebounded as traders started piling SHIBs near the 20-4H EMA.
In addition, SHIB’s continuous retracement shows evidence of a possible correlation between the 1 million-10 million SHIB address dump and its price. mood Note The price recovers after the millionaires sell, as shown in the graph below.
SHIB supply distribution | Source: Santiment
This shows the intention of the micro traders to absorb the big sell-offs.
According to Google Trends, the bullish retracement on the SHIB market coincided with an increasing number of Internet searches for the keyword “Shiba Inu”.
Show web data trend Shiba Inu in the US is rising over the 12 month period, signaling a boom in retail interest. At 92, that trend is close to the most popular high of 100 last seen in the second week of May, suggesting that many internet users are searching for information about Shiba Inu.
Search for “Shiba Inu” | Source: Google Trends
However, Internet searches for the keyword “How to buy Shiba Inu” only reached 18 years in the same period. Compared to the previous week, however, interest rates have risen by 260%.
Descending triangle and bull flag
Tech-wise, SHIB’s recent rebound appears to have invalidated the bearish setup.
In particular, the price of SHIB broke out of the descending triangle as it closed above the top trendline of the pattern as volume increased. While awaiting confirmation of the breakout, it has increased the prospect of price continuation.
The rally is prolonged by a temporary bull flag which usually drives the price much higher than the previous rally’s height. In other words, a breakout above the bull flag can send the price up to $ 0.0004713.
4-hour SHIB / USDT price chart with bull flag setup | Source: TradingView
If the price falls back into the pennant area in the meantime, there is a risk that a descending triangle setup will be triggered again. Once there, the SHIB can correct towards USD 0.0002195 followed by a breakout down to USD 0.00001.
Here you can see the SHIB prices.
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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
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According to Cointelegraph