Shiba Inu Could Rally 70% Following Consolidation Period
Shiba Inu could soon resume its uptrend as the asset moves closer to a breakout point.
- Shiba Inu consolidates in a tight range, seemingly edging closer to a breakout.
- A spike in buying pressure could push SHIB into a 77% bull run.
- Still, the $0.000028 support level must hold to avoid a potential spike in profit-taking.
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Meme coin Shiba Inu appears to be leading the next “alt season” as its price has risen since the beginning of the month. The formation of a bullish pattern on its price chart suggests that SHIB’s bull run is not over yet despite the recent consolidation period.
Shiba Inu Looks Poised to Break Out
Shiba Inu has kicked off Q4 2021 on the right foot. The so-called “Dogecoin killer” has risen by 375% since Oct. 1, reaching a five-month high of $0.000035. Although a spike in profit-taking has kept prices from soaring in the past five days, it appears that SHIB is primed for higher highs.
The sudden upward impulse seen during the first week of October appears to have created the flagpole of a bullish pennant formation on Shiba Inu’s four-hour chart. Meanwhile, the ongoing consolidation period could be developing the pattern’s pennant.
This bullish continuation pattern anticipates that Shiba Inu could advance another 77% upon breaking the pennant’s upper trendline at $0.000032. A decisive four-hour candlestick close above this resistance barrier could push SHIB’s market value toward $0.000054.
Although the odds appear to be favoring the bulls, it would be prudent for market participants to wait for confirmation before entering any trades. A sudden increase in selling pressure could invalidate the optimistic outlook and lead to a steep correction instead.
The Fibonacci retracement indicator, measured from the $0.000035 high of Oct. 7 to the $0.000020 low of Oct. 8, suggests Shiba Inu must hold above $0.000028 to avoid a significant pullback. Breaching this crucial support level could see SHIB fall to $0.000026 or even retest the Oct. 8 swing low of $0.000020.