Shiba Inu (SHIB) is seeking to reclaim the $0.000035 price level after experiencing a breakout against Bitcoin (BTC) on the daily chart. The overall cryptocurrency market is currently in a downtrend, and Shiba Inu has followed suit, dropping by 22.48% this month. However, it is worth noting that Bitcoin has outperformed Shiba Inu during this period, despite both experiencing declines since April 23, as shown in the SHIB/BTC chart.
It was recently brought to attention by Shiba Inu community figure and crypto trader Digarch that Bitcoin has shown strength against Shiba Inu following the impressive upward movement of SHIB against the leading cryptocurrency.
Shiba Inu’s upward push against Bitcoin began in late February, during the frenzy surrounding meme coins. This led to a significant rally for SHIB, resulting in a 12-month high of 0.000000000660 BTC on March 5. Despite Bitcoin experiencing a similar surge, SHIB outperformed it by gaining 243% during this period.
However, after reaching the high of 0.000000000660, Shiba Inu underwent consolidation against Bitcoin, resulting in intermittent declines. This consolidation phase formed a bull flag pattern, which was identified by Digarch in a accompanying chart.
A bull flag pattern typically occurs when a cryptocurrency undergoes a sharp rally and then enters a consolidation phase after reaching a significant resistance level. This consolidation phase, represented by the flag, indicates a pause in the market before a potential continuation of the initial uptrend.
The resumption of the uptrend often happens when SHIB breaks above the bull flag and retests its upper trendline. Market data confirms that SHIB broke above the bull flag on April 20, spiking 13% against Bitcoin. Since then, Shiba Inu has been gradually declining, approaching a retest of the upper trendline.
If SHIB continues to drop and retests the trendline, it may experience further price declines, potentially falling to the lows of April 14 at 0.0000000003263 BTC. Currently, Shiba Inu is trading at 0.0000000003807, with strong support at the 50-day EMA (0.0000000003798) opposing its current downtrend.
A drop below this level could indicate trouble in the short term, potentially pulling Shiba Inu towards the support at the upper trendline of the bull flag. However, in the long term, this could be beneficial as Shiba Inu aims to use this retest as a launching point for a resumption of the rally seen in late February.
Once this occurs, Digarch predicts an immediate target of 0.0000000005217 BTC, which would bring SHIB back to the highs of early March. At this price, if Bitcoin returns to its value of $68,000, SHIB would trade at the $0.000035 level. Currently, Shiba Inu is priced at $0.00002340, while BTC is trading at $62,135, with both assets experiencing declines today.
Despite the ongoing downtrend, market commentators in the Shiba Inu community remain confident. A market analyst recently stated that SHIB is poised for a second leg of an uptrend, potentially leading to a 409% surge to $0.000125.
Disclaimer: This article provides informational content and should not be considered as 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 thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses incurred.
