Shiba Inu is setting its sights on reaching the price level of $0.00003946 after recently breaking out of a falling wedge pattern on the 4-hour chart.
The overall cryptocurrency market is experiencing a rebound, with several assets attempting to recover from the losses of the past two weeks. Shiba Inu is one of these assets, as it has suffered a significant 44% drop from its high of $0.00003285 on March 28 to a 6-week low of $0.00001830 on April 13.
After a slight recovery from the low point, Shiba Inu traded within a consolidation range of $0.00002383 to $0.00002083 between April 14 and 19. However, the latest Bitcoin halving on April 20 sparked an impressive comeback for SHIB.
On April 20, SHIB experienced a substantial gain of 14.43%, surpassing the resistance level of $0.000025 and breaking above the 50-day EMA ($0.00002454). A crypto analyst and Binance Square creator named Ak47 noticed an interesting pattern in the Shiba Inu 4-hour timeframe.
According to Ak47’s chart, Shiba Inu has been trading within a falling wedge pattern since its drop from the high of $0.00004567 on March 5. A falling wedge pattern forms when prices move within a narrowing, downward-sloping range, indicating that a downtrend is losing momentum and an upward reversal could be on the horizon.
During its recent recovery, which has seen a 30% increase in value since April 19, Shiba Inu has broken above the falling wedge pattern, signaling the beginning of a bullish reversal. Ak47’s chart suggests that SHIB may experience a slight retracement to test the upper trendline of the falling wedge.
After this retest, Shiba Inu is expected to undergo a significant price rally similar to the upward movement observed from February 28 to March 5. Ak47 projects that this rally could lead to a sustained increase in price to $0.00003946.
However, Shiba Inu will face several obstacles along the way to its ultimate target. The first resistance level is currently at $0.00002803, which halted SHIB’s upward surge when it surpassed the psychological threshold of $0.000028.
As of now, SHIB has risen by 3% and is approaching a retest of the resistance level. If this obstacle is overcome, the next key resistance level is at $0.00003491, which aligns with the Fibonacci 0.618 level. Shiba Inu is currently trading at $0.00002711, and multiple predictions suggest a long-term push towards $0.001.
Despite the prevailing confidence, sentiments among investors remain high, as they continue to hold onto their Shiba Inu tokens for an extended period. Notably, data from IntoTheBlock shows that over 1 million SHIB addresses have held onto their tokens for more than a year, with over 11,000 wallets holding at least 1 billion SHIB.
Disclaimer: This content is for informational purposes only and should not be considered financial advice. The views expressed in this article are the author’s personal opinions and do not reflect the opinion of The Crypto Basic. Readers are advised to conduct their own research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.