Shiba Inu (SHIB) is looking to recover the $0.000035 price territory following a recent bull flag breakout staged against Bitcoin (BTC) on the daily chart.
The broader crypto market is currently trading within a downtrend, and Shiba Inu has followed this path, having collapsed 22.48% this month. Despite Bitcoin witnessing a similar decline since April 23, it has outperformed Shiba Inu within this timeframe, as evidenced in the SHIB/BTC chart.
However, it bears mentioning that the recent strength demonstrated by Bitcoin against Shiba Inu comes after an impressive upswing from SHIB over the firstborn crypto. Shiba Inu community figure and crypto trader Digarch first called attention to this trend in a recent post on X.
Shiba Inu Outperforms Bitcoin
Notably, Shiba Inu’s upward push against Bitcoin started in late February when SHIB engineered an impressive bull run amid the meme coin mania. This rally helped Shiba Inu claim a 12-month high of 0.000000000660 BTC on March 5. Despite Bitcoin’s similar surge, SHIB gained 243% against it during this period.
However, following the 0.000000000660 high, Shiba Inu consolidated against Bitcoin, eventually recording intermittent declines. This resulted in the formation of a bull flag, as identified by Digarch in an accompanying chart.
A bull flag pattern typically emerges when a cryptocurrency experiences a sharp rally and then enters a consolidation phase upon reaching a significant resistance level. This consolidation phase, which forms the flag, indicates that the market has paused before potentially resuming the initial robust uptrend.
SHIB Breaks Above Bull Flag
The resumption of the uptrend often occurs after SHIB breaks above the bull flag and then retests its upper trendline. Market data confirms that SHIB broke above the bull flag on April 20, when it spiked 13% against Bitcoin. Following this spike, Shiba Inu has now continued to decline, gradually dropping to retest the upper trendline.
Should SHIB push toward retesting the trendline, it could witness more days of price drops, eventually collapsing to the April 14 lows at 0.0000000003263 BTC. Meanwhile, with Shiba Inu currently trading for 0.0000000003807, the bulls have opposed Shiba Inu’s current downtrend with robust support stationed at the 50-day EMA (0.0000000003798).
A drop below this level could spell trouble in the short term, eventually pulling Shiba Inu toward the support at the upper trendline of the bull flag. Nonetheless, in the long term, this could be favorable, with Shiba Inu seeking to leverage this retest as a launchpad for greater heights in a resumption of the late February rally.
Once this occurs, Digarch presents an immediate target of 0.0000000005217 BTC, marking a return to the highs of early March. At this price, SHIB would trade at the $0.000035 level if Bitcoin returns to its price of $68,000. Currently, Shiba Inu is changing hands at $0.00002340, while BTC trades for $62,135, and both assets are down today.
However, the downtrend has not impacted the confidence among market commentators in the Shiba Inu community. A market analyst asserted last week that SHIB is about to record a second leg of an uptrend, which could ultimately lead to a 409% surge to $0.000125.
DisClamier: 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 opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
