Michael, a notable technical analyst in the crypto market, projects Shiba Inu to reach a $0.0001011 price target following a breakout from its multi-month bull flag.
The latest analysis from Michael comes when Shiba Inu is struggling to regain lost ground amid a broader market collapse. SHIB has continued to witness sustained declines since June 6 following a retest of the $0.00002622 price threshold that day. This is largely due to Bitcoin’s (BTC) downturn, which has impacted the rest of the market.
Shiba Inu Forms Bull Flag
However, when viewed from a larger perspective, Shiba Inu’s current downtrend extends beyond recent weeks. Notably, SHIB has been witnessing lower lows and lower highs on the weekly timeframe since it dropped from $0.000045 on March 5, data from Michael’s chart confirms.Â
As a result, the charts indicate a sustained downward trend that has persisted for over three months. Interestingly, this downward trend appears to have resulted in the formation of a bull flag. The pole of the flag formed when SHIB spiked 370% to $0.000045 in March, while the flag itself has formed from the ongoing downtrend.
$SHIB / $USDT – is cooking triple 0 's is incoming pic.twitter.com/cq9hSwXraA
— BigMike7335 (@Michael_EWpro) June 16, 2024
Such a market structure typically indicates a pause to the uptrend, resulting in bearish consolidation or downward trend for a period before the uptrend resumes. For Shiba Inu to continue its uptrend, it must break above the downward channel formed by the market turbulence. Michael expects this breakout to occur soon.
A $0.00010114 Price Target
Known for his use of Elliott Wave structures to discuss price movements, the analyst emphasized through his chart that SHIB is currently following a typical five-wave Elliott Wave pattern. According to him, Shiba Inu currently trades within the fourth wave, which usually features market declines.
Nonetheless, he expects the fifth wave to begin with a breakout from the downward channel over the next few weeks. Should this occur, Michael projects a $0.00010114 price as the ultimate target for when Shiba Inu completes Wave 5. This would mark a 398% increase from SHIB’s current value of $0.00002028.
At the current level, Shiba Inu’s ultimate goal is to retain the $0.00002 psychological support as it awaits a rebound from the broader market. A push below this support before such a rebound would only leave SHIB with more ground to cover on the path to the $0.00003 level when such a resurgence occurs. This reduces Shiba Inu’s chances of greater heights.
Nonetheless, SHIB witnessed a renewal of interest over the weekend, with the Accumulation/Distribution metric recovering from 12.67 trillion to 14.16 trillion SHIB on Sunday. In addition, Shiba Inu’s RSI, currently sitting at 34.89 suggests that there is room for much higher price appreciation.
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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