Shiba Inu currently trends within a bull flag pattern, and its breakout may not only ensure its rally but also drive a broader meme coin upsurge.
A market analyst, “Mark.eth,” shared in a July 29 post that Shiba Inu looks bullish on the weekly timeframe despite recent price retracement. He identified that the second-largest meme coin by market cap currently trends within a bull flag, and a breakout would spur a massive price surge.
Notably, this bullish commentary comes despite a consolidatory price movement by Shiba Inu in the past two weeks. For context, SHIB rallied to a high of $0.00001597 last week but has retraced 18% from the high to its current price of $0.00001305.
Shiba Inu Consolidates Within Bullish Structure
Notably, the rally to $0.00001597 saw Shiba Inu reach the resistance trendline of a seven-month bull flag structure. Its origin dates back to the week of January 27, when its 18.5% correction marked the formation of the pattern.
Since then, Shiba Inu has made lower lows and lower highs within the flag pattern to date. Meanwhile, two attempts to break out have proved elusive, with SHIB facing strong price rejection each time.
For context, an accompanying chart shows that the May 12 high of $0.00001765 saw Shiba Inu touch the upper resistance line. However, it could hold the massive downward pressure from the supply wall, ensuring a rejection.
Its recent attempt, spurred by a broader market bullish trend, saw it revisit the resistance but faced a similar outcome as in May. Nonetheless, analyst Mark.eth foresees an eventual breakout and a subsequent “mega bullish” drive to higher prices.
While he did not provide a timeline, he mentioned that the breakout momentum from Shiba Inu would spill over to the broader meme coin market, potentially sparking a meme frenzy. With a market cap of $7.7 billion, which is about 10.7% of the total meme coin market cap, Shiba Inu’s price action could undoubtedly impact the mood of the sector.
A Huge Pump Is Coming for Shiba Inu
Meanwhile, Shib Spain agrees with the bullish outlook for Shiba Inu but affixed a price target to his Tuesday analysis. In the tweet, he predicted that a huge pump is on the horizon for SHIB, potentially targeting $0.0001.
Notably, this parabolic development represents a 666% surge for Shiba Inu, pushing prices above its current all-time high of $0.0000885. He cited a price rebound from a major support area as a possible catalyst for the price rally.
For context, Shiba Inu is approaching a key support area around $0.0000120 on the 4H timeframe amid a broader market downtrend. With the area previously cushioning prices, the market watcher expects SHIB to rebound from the area to his $0.00010 target.
Interestingly, he is not alone in this price outlook. A TradingView analysis from BITfinity also predicts a rally to $0.0001, referencing a three-year symmetrical triangle breakout as a catalyst. Illagodzilla also forecasted a SHIB uptick to $0.00017, citing a double bottom formation.
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