Shiba Inu is now looking to push toward the $0.00003946 price level after it recently breached above a multi-week falling wedge on the 4-hour chart.
The broader cryptocurrency market is now on a rebound, with several assets aiming to recover the losses of the past two weeks. Shiba Inu is one such asset, having suffered a 44% crash from the $0.00003285 high on March 28 to a 6-week low of $0.00001830 on April 13.
Shiba Inu traded in a consolidation after a mild recovery from the $0.00001830 low, ranging between $0.00002383 and $0.00002083 from April 14 to 19. However, SHIB recorded an impressive comeback on the back of the latest Bitcoin halving, which occurred at 12:09 AM (UTC) on April 20.
Shiba Inu in a Falling Wedge
SHIB witnessed a massive 14.43% gain on April 20, conquering the $0.000025 resistance and breaching above the 50-day EMA ($0.00002454). Interestingly, Ak47, a crypto analyst and Binance Square creator, observed a notable pattern amid the recent price movements in the Shiba Inu 4-hour timeframe.
Data from her chart confirms that Shiba Inu has been trading within a falling wedge since it dropped from the $0.00004567 high on March 5. Notably, a falling wedge pattern forms when prices move within a narrowing, downward-sloping range, suggesting that a downtrend is losing momentum and an upward reversal could be on the horizon.
The $shib/usdt pair is showing a falling wedge pattern on the 12-hour timeframe.
This often precedes a bullish breakout, signaling potential gains ahead. Keep an eye on it! #SHIB #cryptocurrency #bullish #trading $SHIB #DYOR pic.twitter.com/XseUuxffmQ
— Ak47♛ (@HolaItsAk47) April 21, 2024
Amid its recent recovery campaign, which has seen it recoup 30% of its value since April 19, Shiba Inu has now broken above the falling wedge pattern, signaling the start of the bullish reversal. Ak47’s chart suggests that SHIB could record a mild retracement to retest the upper trendline of the falling wedge.
SHIB Aims for $0.00003946
However, following this retest, Shiba Inu is poised to witness a massive price rally akin to the upward push recorded from Feb. 28 to March 5. Should this occur, Ak47 projects a sustained rally to $0.00003946.
Nonetheless, Shiba Inu would need to breach several hurdles along its path to the ultimate target, with the first resistance level stationed at $0.00002803. This resistance point served as a roadblock to SHIB’s upward surge yesterday when it rallied beyond the $0.000028 psychological threshold.
SHIB is now up 3% today as it moves to retest the resistance level. If this roadblock falls, the next pivotal resistance sits at $0.00003491, aligning with Fibonacci 0.618. Shiba Inu trades for $0.00002711 at last check, with multiple predictions projecting a push toward $0.001 in the long term.
Amid prevailing confidence, sentiments remain high, with investors continually holding onto their Shiba Inu tokens for a long period of time. Notably, IntoTheBlock data confirms that over 1 million SHIB addresses have held onto their tokens for more than a year, with over 11K wallets holding at least 1 billion SHIB.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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