Amidst a broader market downturn, top crypto analyst Ali Martinez has identified a potential opportunity within Shiba Inu (SHIB), outlining a bullish technical pattern and a 294% upswing.
Market Downturn and SHIB’s Price Action
The recent sentencing of Binance’s former CEO, Changpeng Zhao, further intensified the ongoing market correction, pushing Bitcoin below $58,000 for the first time in two months. This downturn has also impacted SHIB, which recently plunged to an 18-day low of $0.00002057.
SHIB has made a modest recovery and trades at $0.000022 at the time of press, with a 0.26% increase in the last 24 hours. Despite this recovery, data from CoinMarketCap shows that SHIB experienced a 15.37% decline over the past week.
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Bull Flag Formation and Potential Breakout
However, Martinez suggests that SHIB is forming a bull flag on the daily chart. This technical pattern often indicates a continuation of a prior uptrend, which in SHIB’s case, began in late February. The current consolidation period following the initial rise is characteristic of a bull flag.
Martinez anticipates a further downward push until SHIB reaches its April 13 low of $0.0000183, which he identifies as a potential entry point. He believes a decisive breakout above the bull flag could trigger a significant uptrend, with a target price of $0.00007232.
Challenges and Resistance Levels
Reaching this target would represent a remarkable 295% increase from the $0.0000183 low. However, SHIB would need to overcome several significant hurdles, including the crucial $0.00002751 resistance level, which aligns with the 0.5 Fibonacci retracement.
Data from IntoTheBlock indicates that a significant concentration of SHIB holders (approximately 136,680 addresses holding 101.4 trillion SHIB) resides between $0.000025 and $0.000030, posing a potential resistance zone.
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Surpassing this area would bring the $0.00003182 resistance into play, followed by $0.00003795. Ultimately, the $0.000045 price level, the March 5 high, remains the most significant obstacle before reaching the $0.00007232 target.
While the current market conditions present a buying opportunity for SHIB according to Martinez’s analysis, it is crucial to acknowledge the inherent volatility of the cryptocurrency market and the potential for further price fluctuations before reaching the projected target.
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