Crypto Analyst Predicts 244% Shiba Inu Rally Based On Bull Flag
May 02 2024 - 10:00AM
NEWSBTC
An analyst explained how Shiba Inu could be heading towards a
massive rally based on a bull flag pattern that forms in its daily
chart. Shiba Inu Has Been Consolidating Inside A Bull Flag Recently
In a new post on X, analyst Ali has discussed about a bull flag
that has recently appeared in the daily price of Shiba Inu. The
bull flag is a pattern in technical analysis (TA) that, as its name
suggests, is shaped like a flag on a pole. The pattern forms when
an uptrend is followed by a period of consolidation inside a
parallel channel toward the downward direction. The starting
uptrend makes up for the pole, while the channel acts as the flag.
Related Reading: Bitcoin Greed No More: Sentiment Back At Neutral
After $57,000 Plunge Like other TA patterns, the consolidation
channel or flag here comprises two parallel lines. The upper level
connects the price tops, while the lower one joins the bottoms.
When the asset retests either of these levels, it’s probable to
undergo a reversal, with the upper line of the channel acting as a
point of resistance and the lower one as support. A break above the
resistance line is considered a bullish signal for the price. The
uptrend resulting from such a break may be the same length as the
flag’s pole. On the other hand, a drop below the flag (that is, a
breakdown of support) invalidates the formation and may even
suggest the takeover of bearish momentum for the asset. Similar to
the bull flag, there is also the bear flag in TA, which works much
in the same way, except that it occurs during a downtrend (with the
flag signifying consolidation towards the upside following a
downward pole). Now, here is the chart shared by Ali that shows the
bull flag pattern Shiba Inu has potentially been forming on its
daily price recently: The formation that the memecoin's price has
been displaying during the last few weeks | Source: @ali_charts on
X From the graph, it’s clear that the Shiba Inu 1-day price has
been consolidating inside what appears to be a bull flag pattern
channel in the past few weeks. “I’m placing buy orders around
$0.000018343, aiming for a bullish breakout that sends $SHIB to
$0.000072323,” says the analyst. The former level is about where
SHIB should meet the flag’s support next if it continues in its
current trajectory, while the latter target is based on the height
of the pole. Related Reading: Bitcoin To $92,190: Crypto Analyst
Reveals Path To ATH Target A run to the bullish target of
$0.000072323 would imply a rally of more than 244% from the current
spot price of the cryptocurrency, while from the lower support of
$0.000018343, any such surge would correspond to a growth of over
294%. It remains to be seen whether Shiba Inu will show a break
above this bull flag pattern and, if it does, whether the price
will benefit from bullish effects. SHIB Price At the time of
writing, Shiba Inu is trading around $0.00002110, down more than
18% over the past week. Looks like the price of the coin has been
heading down over the last few days | Source: SHIBUSD on
TradingView Featured image from Traxer on Unsplash.com, charts from
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