Following a historic surge mirroring Bitcoin’s climb to a new all-time high, Shiba Inu is experiencing a period of price consolidation. After reaching 0.00004456, a level SHIB has not reached since late 2021, the meme coin saw a major pullback and is currently consolidating at around $0.00003549.
This consolidation, however, has resulted in the formation of a technical indicator known as a bull flag on the 4-hour chart. This pattern is often seen as a precursor to a breakout and a potential retest of previous highs.
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The Bull Flag Pattern
The bull flag pattern on the 4-hour chart is characterized by a period of consolidation following a sharp price increase. The consolidation phase forms a triangular pattern resembling a flagpole. A breakout from this pattern typically signals a continuation of the uptrend.
Crypto Sheriff (@Gem_Sheriff), a partner with the MEXC exchange, shared the big news on X, and he views this formation as a bullish sign for Shiba Inu, suggesting a potential move back towards its recent highs. Crypto Sheriff described SHIB’s previous climb as the trailer for the upcoming bull run.
#SHIB bullish flag!🔥🦬 You've only watched the bull run trailer of $SHIB!
Always focus on higher goals because we are in the bull season now! pic.twitter.com/ye5dqMPgSS
— CRYPTO SHERIFF (@Gem_Sheriff) March 7, 2024
Shiba Inu (SHIB) Burn and Deflationary Pressure
While technical indicators provide valuable insights, they should be considered alongside fundamental factors that influence an asset’s long-term value. In the case of Shiba Inu, several fundamental developments suggest continued growth potential. One of SHIB’s major strategies for price increases is token burning.
The Shiba Inu development team has announced plans to implement a large-scale SHIB token-burning initiative. The auto-burn portal is also being tested on Puppynet, and it could significantly increase the burn rate when launched.
This burning process removes tokens from circulation, which can help reduce overall supply and create deflationary pressure. This process, in turn, could lead to a price increase, especially during periods of high demand.
We are on twitter, follow us to connect with us :- @TimesTabloid1
— TimesTabloid (@TimesTabloid1) July 15, 2023
Read Also: XRP Price Analysis: This Technical Analysis Shows Bullish Outlook and Key Levels To Watch
MACD Indicator Adds to Bullish Outlook
The Moving Average Convergence Divergence (MACD) indicator is another technical tool used to gauge momentum and potential trend reversals. The current daily MACD chart for Shiba Inu shows a significant separation between the two lines. This suggests a potential shift towards a bullish trend, further bolstering the sentiment indicated by the bull flag formation.
The combination of multiple bullish technical patterns and ongoing token-burning initiatives suggest that Shiba Inu could surge soon. Recent data shows that the crypto world is bullish on SHIB, which could lead to continued price surge.
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