Shiba Inu (SHIB) appears to be preparing for a bullish breakout as a falling wedge begins to form.
The SHIB price is trending down in an area defined by two contract trend lines while the volume is falling. This shows that investors are less concerned about the downtrend.
Falling wedges often provide an ideal stepping stone for a bullish breakout when price closes above the structure’s upper trendline. On Thursday, the SHIB showed signs of a similar outbreak.
USDT chart shows a falling wedge. Source: Fiery Trade
Specifically, the token closed just above the upper trendline of the falling wedge and hit an intraday high of $ 0.000329. The move up reinforces predictions that the SHIB will continue to trend higher in the coming sessions, with Fiery Trading analysts finding that a bullish retracement is underway in the crypto markets.
“Since the entire crypto market is experiencing strong upward movements, it is to be expected that SHIB will follow suit. The token is currently trading near the upper resistance of the pattern for a possible breakout shortly. Look for a day close above the resistance. “
Next bullish target for SHIB
A decisive move above the upper trendline of the falling wedge could cause traders to watch for a bullish confirmation near $ 0.00003929.
Simply put, if SHIB price breaks above $ 0.00003929, the previous resistance, traders can continue to place bullish bets towards a maximum height gap between the top and bottom trend lines ($$$$) (0.000424).
USDT chart has a falling wedge setup. Source: TradingView
As a result, a potential downward wedge breakout can push the SHIB price to $ 0.00008026 as shown in the graph above. Conversely, a pullback from the upper trendline of the wedge may cause the SHIB to retest the lower trendline of the structure around the USD 0.0000235 support.
The Robinhood List rumors support the current rally
SHIB’s bullish setup mainly came after rebounding nearly 30% in three days.
At the heart of this strong rally were some fundamental catalysts. These include speculate via the listing of SHIB on Robinhood, a commission-free trading app with an average daily volume of over 14 million US dollars.
Additionally, SHIB also rose along with the rebound in crypto markets on Wednesday, with the leading digital asset, Bitcoin, up more than 12% and Ether up nearly 18% in the past three days.
Although there is a chance the SHIB price will skyrocket due to too much speculation, Vladimir Kardapoltsev, chief executive officer of blockchain wallet company PointPay, noted that the potential for more profits in 2022 due to the holding model is huge.
“It’s worth noting that the average SHIB holding period on Coinbase Global has increased from 6 to 32 days in just over five weeks. People hoarded SHIB because it is ready to change itself to become more than just a memecoin like Dogecoin. “
“There are several important criteria that investors and potential buyers should consider when determining the SHIB price in 2022. Shibarium, the video game Oshiverse and ShibaSwap have all contributed to the Shiba Inu’s increased rating, putting it ahead of competitors like Dogecoin, which is still a minimally developed memecoin. “
Join our telegram to keep track of news and comment on this article: https://t.me/coincunews