Shiba Inu (SHIB) is showing signs of a potential price surge as a falling wedge pattern forms on the 1-day time frame. According to crypto analyst Dami-defi, if SHIB manages to break out of this pattern, a price pump of 50% or more is expected, signaling the continuation of the ongoing meme season in the cryptocurrency market.
What you'll learn 👉
Technical Analysis Reveals Bullish Potential
A technical analysis by altFINS supports the bullish outlook for SHIB. The analysis highlights that SHIB has successfully broken out of the falling wedge pattern and has retested the breakout level.
This development suggests that the token could potentially swing up to the $0.000035 level next, presenting a significant upside potential for investors.
Falling Wedge Pattern: A Bullish Signal
The falling wedge pattern is typically considered a bullish formation, often resulting in a breakout to the upside. When the price breaks above the upper trend line of the wedge, it is expected to continue trending higher.
Swing traders can potentially capitalize on emerging patterns by trading between the convergence lines before a breakout occurs. However, most traders are advised to wait for a completed pattern with a confirmed breakout before placing a buy order.
Mixed Trends and Momentum Indicators
Source: altFINS – Start using it today
The technical analysis reveals mixed trends for SHIB, with a neutral outlook on both a short-term and medium-term basis, while maintaining an uptrend on a long-term basis.
The momentum indicators also present a mixed picture, with the MACD (Moving Average Convergence Divergence) line above the MACD signal line, indicating a bullish momentum. However, the RSI (Relative Strength Index) is currently around 50, suggesting a neutral market condition.
For SHIB to continue its upward trajectory, it will need to overcome key resistance levels. The nearest resistance zone is identified at $0.000035, followed by $0.000040. On the downside, the nearest support zone is located at $0.0000225, with the next support level at $0.0000150.
The potential breakout and price pump for SHIB comes amidst a renewed interest in meme coins, as market sentiment appears to be shifting in favor of these speculative assets. Meme coins, such as Dogecoin (DOGE) and Shiba Inu (SHIB), have a history of experiencing sudden price surges, often driven by social media hype and investor frenzy.
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