The price of Shiba Inu, the second-largest meme cryptocurrency, has been moving slowly this week, mirroring Bitcoin‘s pre-halving consolidation pattern. According to the chart below, the daily price movements show short green and red bodies with no clear advantage for either bulls or bears. However, a closer examination of the daily chart suggests the emergence of a bullish reversal pattern, implying an upcoming price increase for this asset.
Potential Bullish Breakout for SHIB Coin with Bitcoin Halving on the Horizon
The price of Shiba Inu has been correcting in a consistent pattern, which can be observed by looking at two trendlines that converge in what’s known as a bullish “wedge” formation. These trendlines have functioned as both resistance and support, resulting in a significant drop in price from $0.0000456 to $0.0000183 – a decline of approximately 60%.
Despite the downtrend line providing initial resistance, the SHIB coin experienced significant buying pressure and dropped back to $0.00139 (equivalent to $0.0000227) during this time. With Bitcoin’s halving event delayed, the overall market remained stagnant, causing Shiba Inu’s price to hover around that level for over a week.
Based on the latest findings from well-known trader Alichart’s research, Bitcoin’s past bull markets have shown a stage of excitement or exuberance, signaling their peak. This stage has not emerged in the present cycle, implying that the market may still be climbing to its maximum point.
The analysis derives from Long-Term Holder Net Profit/Loss (NUPL) figures for Bitcoin, a metric that assesses the broader market attitude and gains from prolonged investments.
In every Bitcoin bull market, there is a stage of intense excitement and optimism, which typically indicates a peak. At present, Bitcoin hasn’t experienced this heightened enthusiasm during the ongoing cycle.
— Ali (@ali_charts) April 18, 2024
In the next 12 hours, the Bitcoin halving event approaches, and market players anticipate a significant change in market attitude, leaning towards bulls. This potential upswing for Bitcoin may propel altcoins like Shiba Inu past their current resistance patterns.
If the price of SHIB breaks out above the current trendline in an optimistic manner, it could indicate that the uptrend is not over yet and the coin’s price may rise to hit $0.0000328 as the next milestone. With further bullish momentum, the price could even reach a potential target of $0.00004.
Technical Indicator:
- Exponential Moving Average: The Shiba Inu price sustainability above 100-day EMA indicates the broader trend for this asset remains bullish.
- Moving Average Convergence Divergence: A bearish crossover between the MACD and signal lines reflects the seller’s influence on the near-term trend.
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2024-04-19 22:06