Shiba Inu is now looking to push toward the $0.00003946 price level after it recently breached above a multi-week falling wedge on the 4-hour chart.
The broader cryptocurrency market is now on a rebound, with several assets aiming to recover the losses of the past two weeks. Shiba Inu is one such asset, having suffered a 44% crash from the $0.00003285 high on March 28 to a 6-week low of $0.00001830 on April 13.
Shiba Inu traded in a consolidation after a mild recovery from the $0.00001830 low, ranging between $0.00002383 and $0.00002083 from April 14 to 19. However, SHIB recorded an impressive comeback on the back of the latest Bitcoin halving, which occurred at 12:09 AM (UTC) on April 20.
Shiba Inu in a Falling Wedge
SHIB witnessed a massive 14.43% gain on April 20, conquering the $0.000025 resistance and breaching above the 50-day EMA ($0.00002454). Interestingly, Ak47, a crypto analyst and Binance Square creator, observed a notable pattern amid the recent price movements in the Shiba Inu 4-hour timeframe.
Data from her chart confirms that Shiba Inu has been trading within a falling wedge since it dropped from the $0.00004567 high on March 5. Notably, a falling wedge pattern forms when prices move within a narrowing, downward-sloping range, suggesting that a downtrend is losing momentum and an upward reversal could be on the horizon.
The $shib/usdt pair is showing a falling wedge pattern on the 12-hour timeframe.
This often precedes a bullish breakout, signaling potential gains ahead. Keep an eye on it! #SHIB #cryptocurrency #bullish #trading $SHIB #DYOR pic.twitter.com/XseUuxffmQ
— Ak47♛ (@HolaItsAk47) April 21, 2024
Amid its recent recovery campaign, which has seen it recoup 30% of its value since April 19, Shiba Inu has now broken above the falling wedge pattern, signaling the start of the bullish reversal. Ak47’s chart suggests that SHIB could record a mild retracement to retest the upper trendline of the falling wedge.
SHIB Aims for $0.00003946
However, following this retest, Shiba Inu is poised to witness a massive price rally akin to the upward push recorded from Feb. 28 to March 5. Should this occur, Ak47 projects a sustained rally to $0.00003946.
Nonetheless, Shiba Inu would need to breach several hurdles along its path to the ultimate target, with the first resistance level stationed at $0.00002803. This resistance point served as a roadblock to SHIB’s upward surge yesterday when it rallied beyond the $0.000028 psychological threshold.
SHIB is now up 3% today as it moves to retest the resistance level. If this roadblock falls, the next pivotal resistance sits at $0.00003491, aligning with Fibonacci 0.618. Shiba Inu trades for $0.00002711 at last check, with multiple predictions projecting a push toward $0.001 in the long term.
Amid prevailing confidence, sentiments remain high, with investors continually holding onto their Shiba Inu tokens for a long period of time. Notably, IntoTheBlock data confirms that over 1 million SHIB addresses have held onto their tokens for more than a year, with over 11K wallets holding at least 1 billion SHIB.
