Shiba Inu (SHIB) has gained significant attention from investors following a breakout from a prolonged falling wedge pattern.
According to market expert Javon Marks, this technical signal suggests the possibility of a sharp upward trend, potentially driving SHIB to a target price of $0.000081. If this prediction holds, it would represent a remarkable over 360% increase from the cryptocurrency’s current trading levels.
Falling Wedge Breakout
The falling wedge is a classic technical pattern that indicates a potential end to a downward trend and the start of a bullish reversal. It is characterized by two downward-sloping, converging trendlines. As the lines draw closer together, the likelihood of a breakout increases, signaling that market sentiment may shift in favor of the bulls.
Shiba Inu’s price action began to form this pattern following a decline from its March peak of $0.000045. During this phase, SHIB experienced a series of lower lows and lower highs, creating the wedge structure. Towards the end of last month, SHIB successfully broke out of the wedge, suggesting the potential for a significant price reversal.
Following the breakout, Shiba Inu’s price briefly pulled back, retesting the upper boundary of the wedge. However, this retest was seen as a natural step that provided buyers with renewed momentum for a potential upward movement. Marks pointed out that SHIB’s price action post-breakout demonstrates notable resilience, hinting that the cryptocurrency could see further gains.
Shiba Inu Exhibits Strength Post-Breakout
Shiba Inu’s price action has shown considerable strength in the wake of the wedge breakout. The cryptocurrency posted an impressive 22% gain yesterday, marking its largest single-day increase in over six months. This surge pushed SHIB to $0.000019, a level not seen since July.
The breakout above $0.000019 also saw SHIB breach the upper boundary of the Keltner Channel, a technical indicator used to gauge price trends and volatility. When an asset moves beyond the upper band, it often indicates strong upward momentum, although it can also suggest that the asset is approaching overbought conditions.
Despite the potential for an overbought signal, the underlying momentum behind SHIB’s price movement remains robust. According to the Directional Movement Index (DMI), the positive directional indicator (+DI) has climbed to 41.8, while the negative directional indicator (-DI) has dropped to 8.2. This imbalance between buying and selling pressure reflects a strong buying interest in Shiba Inu.
In addition, the Average Directional Index (ADX), which measures the strength of a trend, has risen to 29.8. A reading above 25 generally indicates that a trend is strong and likely to persist. These indicators suggest that SHIB’s current bullish trend could extend further, barring significant market disruptions.
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Key Considerations Moving Forward
While the breakout from the falling wedge is a positive development, Shiba Inu (SHIB) must maintain its upward momentum to reach the projected price target of $0.000081. The broader market sentiment surrounding cryptocurrencies and any macroeconomic factors could also play a role in determining whether SHIB achieves this ambitious target.
As of now, Shiba Inu is trading at $0.00002 reflecting a 16% increase over the past 24 hours. Market participants are closely watching for further confirmation of the breakout, and many are optimistic that SHIB could continue its upward trajectory if current conditions persist.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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