A bullish pattern is now developing on the Shiba Inu chart, with its target a possible retest of the price levels before the recent market crash.
Notably, DRAGONEAGE_FX shared this outlook in his recent TradingView analysis on October 13. The commentary identified a Shiba Inu (SHIB) breakout, which has fueled the prospects of a price recovery.
Shiba Inu Flashes Reversal Signal
The analyst identified that Shiba Inu has just broken above a descending trendline on the 4-hour timeframe. Notably, the meme coin traded above this trendline prior to the October 10 market crash, which sparked a steep correction to $0.0000067 before a quick rebound.
After consolidating below for some time, SHIB pushed past the trendline on October 12, showing signs of a momentum shift. Interestingly, the meme coin continued in that path, reaching a high of $0.00001129 on Monday.
According to the analysis, holding above the support trendline suggests renewed buying pressure. This is a positive sign for Shiba Inu, as it signals interest among market users despite its obvious price underperformance in recent months.
Trendline Retest Before Newer Highs
Nonetheless, the market watcher warns of a possible trendline retest before the next rally. An accompanying chart highlights the emergence of a new trendline from the cryptocurrency’s lows last week, currently serving as support.
Meanwhile, SHIB has done precisely that, with its over 6% pullback today bringing it to the support level. It now has to regain momentum around the area to sustain this breakout and target new highs.
Additionally, the analyst stated that the ongoing retracement presents a good buying opportunity for the unexposed or those looking to place new orders. This offers a fair entry in preparation for the next upswing.
Shiba Inu Targets After Retest
If Shiba Inu does rebound from here, he predicted that it would push towards the next resistance area. Specifically, this lies around $0.00001291, the area it fell from during the historical market crash on October 10.
Shiba Inu currently trades at $0.00001048 at the time of writing. This means it would have to grow by 23% from here to attain the price level.
Meanwhile, other analysts have predicted further highs for the meme coin if it reclaims and holds the $0.00001291 support. For instance, SwallowAcademy shared that SHIB would see a clean sweep through the 200-day exponential moving average resistance, currently at $0.00001329, to greater heights.
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