Shiba Inu (SHIB) is enjoying a resurgence, climbing 9.56% over the past week and leading some analysts to predict a significant upward trend. Market analyst Javon Marks (@JavonTM1) believes SHIB is well-positioned for a substantial rally, citing a technical indicator known as a bull flag pattern.
A bull flag pattern typically forms after a prior uptrend, signifying a consolidation period before a potential resumption of the upward price movement. In SHIB’s case, the initial uptrend occurred between February 25 and March 5, 2024, when its price skyrocketed by over 370%, reaching a yearly high of over $0.00004.
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However, resistance emerged at this level, coinciding with a supply wall seen on IntoTheBlock. This wall indicates a significant concentration of SHIB tokens (approximately 9.56 trillion held by 57,740 addresses) that could act as a selling pressure point.
The subsequent correction led to a decline in SHIB’s price, further exacerbated by broader market turbulence. However, Marks’ analysis highlights the formation of a bull flag pattern within this downtrend, suggesting a potential reversal.
Bitcoin’s recent climb over $71,000 and a general market-wide recovery have helped SHIB’s resurgence. The meme coin experienced an impressive price increase, reclaiming the $0.000026 threshold for the first time in two weeks.
This price uptick signifies a potential breakout from the bull flag pattern. He emphasizes that sustaining this breakout is crucial for SHIB to embark on another significant upward trend similar to the one observed in late February.
To maintain the breakout momentum, SHIB must hold above the crucial support level of $0.0000246. A drop below this point would negate the breakout and send SHIB back within the confines of the bull flag pattern. The bulls should aim to hold the $0.0000249 level, which aligns with the Fibonacci 0.236 retracement level.
Read Also: Top Analyst Foresees 294% Shiba Inu (SHIB) Price Rally
Marks predicts a potential 210% climb to $0.000081, just below its all-time high of $0.00008845. If SHIB surpasses this resistance level, Marks anticipates a further surge towards $0.0001553. This target is 508% higher than SHIB’s current price and represents a new all-time high for the meme coin.
In addition to the Bull Flag, Shiba Inu recently formed a bullish pennant. The positive technical patterns have increased the bullish sentiment around the meme coin, and a massive rally might be just around the corner.
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