Crypto Analyst Predicts 244% Shiba Inu Rally Based On Bull Flag

Analysts explained how Shiba Inu could be headed for a massive rally based on a bullish flag pattern forming on the daily chart.

Recently, a Shiba Inu has been stuck inside a bull flag.

new post At X, analyst Ali discussed the bull flag that recently appeared in Shiba Inu’s daily price. A bull flag, as the name suggests, is a technical analysis (TA) pattern that resembles a flag on a pole.

This pattern forms when an uptrend is followed by a period of downward consolidation within a parallel channel. The start of an uptrend supplements the pole and the channel acts as a flag.

As with other TA patterns, the integration channel or flag here consists of two parallel lines. The upper level connects the price ceiling, and the lower level connects the price bottom.

If the asset retests any of these levels, the upper line of the channel will act as a resistance point, the lower line will act as a support point, and a reversal may occur.

A break above the resistance line is considered a bullish signal for the price. The uptrend resulting from such a break can be as long as the flag pole.

On the other hand, a decline below the flag (i.e. a break in support) could invalidate the formation and even suggest that the asset’s bearish momentum will take over.

Similar to bull flags, TA also has bear flags, which function in much the same way, except that they occur during downtrends (flags indicate consolidation to the upside following a downtrend).

Here, the chart shared by Ali shows the possible bull flag pattern that the Shiba Inu has recently formed in the price of the day.

Shiba Inu bull flag

The formation that the memecoin's price has been displaying during the last few weeks | Source: @ali_charts on X

From the graph, it is clear that the Shiba Inu daily price has been consolidating within what appears to be a bullish flag pattern channel over the past few weeks.

“I have a buy order around $0.000018343 aiming for a bullish breakout that will send $SHIB to $0.000072323,” says the analyst. The former level concerns where SHIB will next meet the flag support if it continues on its current trajectory, and the latter goal is based on the pole height.

A rise to the bullish target of $0.000072323 would represent an increase of over 244% from the cryptocurrency’s current spot price, while from the lower support at $0.000018343, such a surge would represent growth of over 294%.

It remains to be seen whether Shiba Inu will break above this bullish flag pattern and if it does, whether the price will benefit from the bullish effect.

SHIB price

As of this writing, the Shiba Inu is trading around $0.00002110, down over 18% over the past week.

Shiba Inu price list

Looks like the price of the coin has been heading down over the last few days | Source: SHIBUSD on TradingView

Featured image from Traxer on Unsplash.com, chart from TradingView.com

Related Article

0 Comments

Leave a Comment