Renowned crypto market analyst, Michael, predicts that Shiba Inu will hit a price target of $0.0001011 after breaking out from its multi-month bull flag pattern.
Michael’s analysis comes at a time when Shiba Inu is struggling to recover from losses amidst a wider market slump. Since June 6, SHIB has been on a downward trend after testing the $0.00002622 price level, mainly due to the decline in Bitcoin (BTC) affecting the entire market.
Despite recent setbacks, a closer look reveals that Shiba Inu has been experiencing lower lows and lower highs on a weekly basis since dropping from $0.000045 on March 5, as shown in Michael’s charts. This sustained downward trend has lasted for over three months, resulting in the formation of a bull flag pattern. The pole of the flag was formed when SHIB surged to $0.000045 in March, while the flag itself emerged from the ongoing downtrend.
Typically, a bull flag indicates a temporary pause in an uptrend, leading to a period of consolidation or a downward trend before the uptrend resumes. In order for Shiba Inu to continue its upward momentum, it must break out of the downward channel caused by market turbulence, which Michael anticipates will happen soon.
Drawing on Elliott Wave theory, Michael points out that SHIB is currently in the fourth wave of a typical five-wave pattern, which usually involves market declines. However, he expects the fifth wave to kick off with a breakout from the downward channel in the coming weeks, ultimately reaching a price target of $0.00010114 when Wave 5 is complete, signifying a 398% increase from SHIB’s current value of $0.00002028.
To maintain its upward trajectory, Shiba Inu must hold on to the $0.00002 psychological support level while waiting for a market rebound. Falling below this support before a rebound would make it more challenging for SHIB to reach the $0.00003 level in the future, limiting its potential for further growth.
Despite recent fluctuations, SHIB experienced renewed interest over the weekend, with metrics like Accumulation/Distribution and RSI suggesting room for significant price appreciation. However, readers are advised to conduct their own research before making investment decisions, as the opinions expressed in this article are solely those of the author and do not necessarily reflect The Crypto Basic’s views.