Igniting a bull cycle with an engulfing candle, Shiba Inu prepares to bounce back from a long-coming support trendline. Will this recovery result in a bullish break for a 2x run in August?
With the crypto market bouncing back last night, Bitcoin and altcoins are on a bullish track. Leading the bull run, meme coins are back in the game, and Shiba Inu is making waves.
As the second biggest meme coin with a massive community and growing support, Shiba Inu has massive underlying potential. With attempts to make it into the DeFi and layer-2 space, Shibarium bolsters the Shiba Inu ecosystem. Further, recent reports confirm that Shibarium is ready to introduce an automated burn mechanism, as seen in top projects.
With growing significance and relevance in the crypto industry, will Shiba Inu become more than a meme coin? More importantly, will the bullish cycle in $SHIB result in a 2X surge this month?
Bearish Channel Traps SHIB
With a crystal clear lower high and lower low formation, the 1-day log price chart of Shiba Inu forms a falling channel pattern. In the recent broader market correction, the pullback in SHIB leads to a negative cycle to test the support trendline.
With a long-tail lower price rejection from the $0.000010 psychological cushion, Shiba Inu buyers assert dominance over the trendline. Further, as the market bounces back, the $SHIB price completes a bullish engulfing candle with an intraday jump of 11%.
As the bounce back occurs, the MACD and signal lines shoot up in the oversold region, revealing a bullish divergence in the last two dips. Furthermore, the average lines are ready for a bullish crossover, increasing the bull run chances.
The DMI indicator shows a bearish trend in the VI lines, continuing with a surge in the ADX line. However, the recent recovery results in a minor convergence in the VI lines, teasing a potential positive crossover.
Shiba Burn Rates & Transactional Flows Rises
In a recent tweet from community burn tracker Shibburn, the number of SHIB tokens burned over the past 24 hours hit 105,981,775 SHIB, an increase of 137,411.87%.
In the last 7 days, the data shows that 114,775,953 SHIB were burned, resulting in a 366.69% increase. The increase in the burning rate could bolster the recovery chances.
Will Shiba Inu Reach $0.000030?
Currently, Shiba Inu trades at $0.00001410 with a minor retracement of 1.54% following the 11% jump last night. As per the Fibonacci levels, the uptrend in the falling channel must break past the overhead trendline for a bigger run. Hence, this breakout will be a crucial price action signal for buyers.
With the bullish break, the bulls will likely challenge the 50% Fib level at $0.000022 or the 61.80% level at $0.000030 if the momentum sustains.
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.
