Shiba Inu (SHIB) appears to be gearing up for a bullish breakout as the falling wedge begins to form.
SHIB price has been on a downward trend Within the area defined by two contracting trend lines, accompanied by a decrease in volume. This suggests that investors are less concerned about the downtrend.
Therefore, once price closes above the upper trendline of the structure, a descending wedge usually provides an ideal springboard for an upward breakout. On Thursday, SHIB showed similar signs of an upside breakout.
Notably, the coin briefly closed above the upper trendline of the descending wedge, hitting an intraday high $0.00003290.Uptrend sparks expectations SHIB will continue to move higher In the coming sessions, analysts at Fiery Trading noted that a sustained bullish retracement across the cryptocurrency market will further drive the altcoin’s upside bias.
“With a strong bullish move across the cryptocurrency market, SHIBA is expected to follow. The coin is currently trading near the top resistance of the pattern, so a breakout could happen soon. Look for a daily close above the resistance. .”
SHIB’s next upside target
A decisive move above the upper trendline of the descending wedge could have traders eyeing a bullish confirmation near $0.00003929.
In short, if the price of SHIB breaks above $0.00003929 (the previous resistance level), traders may end up placing upside bets towards a level equal to the maximum gap between the upper and lower trendlines ($0.00004240).
Therefore, a potential falling wedge breakout could take the price of SHIB to $0.00008026 as shown in the chart above. Conversely, a pullback from the wedge’s upper trendline could see SHIB retest the structure’s lower trendline near support at $0.00002350.
Potential Robinhood Listing Supports Current Rally
The bullish setup for SHIB mainly comes after a nearly 30% rally in three days.
At the heart of SHIB’s sharp retracement are some fundamental catalysts. That included speculation about the coin’s listing on Robinhood, a zero-commission trading app with an average daily volume of more than $14 million.
SHIBA INU ROBINHOOD will be listed in early February
This is about 6 months too late
– Zero Hedge (@zerohedge) January 12, 2022
related: Five coins with big gains in 2021
While the price of SHIB is likely to surge due to excessive speculation, Vladimir Kardapoltsev, CEO of blockchain wallet company PointPay, noted that there is huge potential for more gains in 2022 due to the recent holding pattern of SHIB investors.
“It is worth mentioning that in just over five weeks, the average holding time of Shiba coins on Coinbase Global has climbed from six days to 32 days,” he told Cointelegraph, adding that “People have been hoarding SHIB Because Shiba Inu is willing to become more than just a meme token like Dogecoin. “
Karda Boltsev said,
“Investors and potential buyers should consider several key criteria when determining the price of SHIB in 2022. Shibarium, gaming video game Oshiverse, and ShibaSwap have all contributed to Shiba Inu’s price surge, putting it ahead of competitors such as Dogecoin, which Still a meme currency game with very little development.”
The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk and you should do your own research when making a decision.