Analyst Forecasts Shiba Inu Rally to $0.000017 If This Support Holds

According to Ali, the asset looks primed to break out of a bull pennant it’s been caught in since the high of $0.00001294 on Jan 18.

Shiba Inu (SHIB) might be getting ready to stage a rally to the $0.000017 price territory, according to veteran trader Ali in his latest analysis. Ali believes the asset is looking to break out of a bull pennant that was formed when it hit the high of $0.00001294 on January 18.

Ali tweets: “Shiba Inu appears to be breaking out of a bull pennant. If SHIB continues to trade above $0.011, it could run toward $0.017.”

However, the seasoned analyst noted that this bullish prediction would only materialize if the asset can hold steady above the $0.000011 price level. It bears mentioning that the last time Shiba Inu went below this level was on January 19. The asset has been trading sideways between $0.000011 and $0.000012 since the slight drop from $0.00001294 on January 18.

Note that a bull pennant is formed when an asset rises to a peak but then starts moving sideways in a narrow range. The pattern is considered bullish because it often signals that the asset is likely to continue appreciating if it holds above crucial support. Ali believes SHIB’s crucial support at this point is at the $0.000011 territory.

Notwithstanding, it is important to take into account the current bearish atmosphere that has become dominant within the broader market, though SHIB appears slightly unfazed by it. Most assets have registered losses in the past 24 hours, but Shiba Inu maintains a 3% gain within the time frame, currently changing hands at $0.00001250. SHIB is the highest gainer among the 30 largest assets in the past 24 hours.

Shiba Inu’s first crucial support level currently sits at $0.00001154 which serves as one of the defenses against a dip below $0.000011. If the first support level breaks, the second support at $0.00001127 could play in to mitigate the chances of an extended slip. This serves as the last line of defense above $0.000011.

SHIB Developments

The bulls could look for support from an uptick in positive sentiments within the community and favorable developments surrounding the asset. The hype around Shibarium, the upcoming layer-2 solution, could also assist in maintaining SHIB’s position above $0.000011. Shytoshi Kusama recently dropped another Shibarium tease which has been called to attention by influencers.

In one of the most recent favorable developments surrounding the asset, blockchain payment platform FCF Pay revealed that SHIB payments with the use of its virtual cards recently hit an all-time high, signaling an uptick in adoption.