Shiba Inu (SHIB), the popular meme-inspired cryptocurrency, experienced a rebound in May, with a 7.5% price increase. This recovery could potentially offset the substantial losses the token suffered in April, which marked its worst monthly decline (over 25%) since the May 2022 collapse of the Terra ecosystem.
This bullish start to May has caught the attention of crypto and forex analyst World of Charts, who in a post on X, forecasts a potential 120% surge for SHIB, establishing a new yearly high around $0.00005434, provided the coin can break out of its current consolidation phase.
Read Also: New Born Whale Grabs 4.49 Trillion SHIB in Single Transaction Ahead of Shibarium Launch
Technical Analysis: Bull Flags and Indicators
Technical analysis by World of Charts reveals a bullish flag pattern on SHIB’s 8-hour chart. This pattern typically emerges after a sharp price increase and suggests a potential continuation of the preceding uptrend. The flag formed in Shiba Inu’s case following its decline from a yearly high of $0.00004567 on March 5th.
Subsequent price action consolidated within a descending channel, characterized by lower highs and lower lows. The analyst’s positive outlook is primarily based on a potential bullish breakout from this pattern.
Additional indicators support this bullish perspective. On the daily timeframe, Bollinger Bands are tightening, a pattern which often signals an upcoming price breakout as witnessed in February.
Furthermore, should SHIB close above both its 20-day Exponential Moving Average (EMA) of $0.00002426 and the upper Bollinger Band resistance at $0.00002753, it would provide strong bullish confirmation.
Also, Coinglass data reveals an increase in SHIB’s Open Interest despite a slight decrease in derivatives volume. This trend, coinciding with rising long positions, further suggests a growing bullish sentiment for SHIB.
We are on twitter, follow us to connect with us :- @TimesTabloid1
— TimesTabloid (@TimesTabloid1) July 15, 2023
Read Also: Analyst Spots Shiba Inu (SHIB) Crucial Support Level For Bullish Breakout
Beyond Technicals: Market Dynamics and Catalysts
While technical analysis can reveal important patterns and potential price movements for Shiba Inu (SHIB), it’s crucial to stay informed about broader market developments that could significantly impact the cryptocurrency.
One such development is the recently announced partnership between MoonPay and PayPal. This collaboration aims to make it easier for US-based PayPal users to purchase popular cryptocurrencies like SHIB. Increased accessibility and convenience for potential investors could drive demand and positively influence SHIB’s market performance.
Cryptocurrency markets are inherently volatile, and investments carry risk. Even with bullish indicators, past performance doesn’t guarantee future results. Before investing in Shiba Inu (or any cryptocurrency), undertake in-depth research and carefully manage your risk exposure.
Follow us on Twitter, Facebook, Telegram, and Google News
