Shiba Inu, (SHIB), seems to be planning for a bullish breakout when a falling wedge pattern starts to form.
SHIB’s price has been trending lower within an area defined as two contracting trendlines, while also accompanied by a decrease in trading volume. Investors are less worried about the downtrend, as this shows.
Falling wedges are a great way to get an upside break if the price closes above its upper trendline. SHIB indicated signs that it was planning a similar topside breakout on Thursday.
Daily price chart for SHIB/USDT with a falling wedge Source: Fiery Trading
The token closed briefly above the upper trendline of the falling wedge, reaching an intraday high at $0.00003290. SHIB’s upside move raised expectations that it would continue its upward trend in the coming sessions. Fiery Trading analysts noted that a bullish retracement across crypto markets would further increase the altcoin’s upside bias.
According to analysts,
“SHIBA is expected to follow the bullish trend that has been evident in the entire crypto market. The current trading price of this token is near the top resistance in the pattern, so a breakout could occur soon. Keep an eye out for daily closes that are above the resistance.
SHIB’s next upside target
If traders make a decisive move above or below the trendline of the falling wedge, they could be looking for confirmation that it is bullish near $0.00003929.
Simply stated, if SHIB’s price breaks above $0.00003929 (a previous level of resistance), traders might place upside bets towards the level that is at a distance equal the maximum gap between the upper trendline and the lower trendline ($0.00004240).
Daily price chart for SHIB/USDT with a falling wedge configuration. Source: TradingView
The potential falling wedge breakout could result in SHIB’s price reaching $0.00008026. As shown in the chart, A pullback from the wedge’s upper trendline might see SHIB test the structure’s lower trendline at $0.00002350 support.
Potential Robinhood listing backs current rally
SHIB’s bullish outlook emerged after the stock rebounded by almost 30% within three days.
A few key catalysts were at the heart of SHIB’s sharp retracement. These include speculation regarding the token’s listing at Robinhood, which is a zero-commission trading platform with more than $14 million daily volume.
SHIBA INU ROBINHOOD LISTING SAID TO COME AS EALY IN FEB This is approximately 6 months too late
— zerohedge (@zerohedge) January 12, 2022
SHIB also rose higher on Wednesday in response to a rebound across crypto markets, with top digital asset Bitcoin (BTC), rising by over 12%, and Ether (ETH, increasing by almost 18% in three days).
Related: Five coins which saw massive gains in 2021
Although it’s possible that SHIB’s stock price soared because of excessive speculation, Vladimir Kardapoltsev (CEO of the blockchain wallet company PointPay) noted that PointPay’s potential to make even more in 2022 was enormous due to SHIB investors recent holding patterns.
“It’s worth noting that in just more than five weeks, the average holding time for Shiba Coins on Coinbase Global has climbed to 6 to 32 days,” he said to Cointelegraph. He added that people have been hoarding SHIB due to Shiba Inu’s willingness to be more than a Dogecoin-like me token.
When determining the price for SHIB in 2022, potential buyers and investors should be aware of several key criteria. Shibarium and Oshiverse are three of the factors that have contributed to Shiba Inu’s surging price. This puts it ahead other competitors like Dogecoin (which is still a meme currency play with limited development). You should do your research before making any investment or trading decision.