• Shiba Inu anticipates a’much wow’ 90 percent breakout as the SHIB price paints a textbook bull pattern

  • The Dogecoin-inspired meme cryptocurrency’s price has been consolidating within a structure that resembles a Bull Pennant.

    In 2021, the Shiba Inu (SHIB) market is in a very strong bull market, with one major continuation pattern on its longer timeframe charts highlighting the potential for an additional 90% upside move ahead.

    SHIB rose more than 1,250 percent year to date (YTD) to reach a yearly high of $0.00003528 (data from Binance) on Oct. 8. Later, the cryptocurrency succumbed to profit-taking sentiment, resulting in a 41.50 percent price drop to $0.00002060.

    However, bulls began to accumulate SHIB near the mentioned low level. A rebound ensued, and the price increased by more than 55% to $0.00003200, where it was met with another round of selloffs. Overall, the SHIB price continued to form lower highs and higher lows in the following sessions, forming a Triangle structure that resembled a Bull Pennant.

    Analysts consider Pennants to be bullish continuation patterns, which means that their formation, combined with declining trade volumes, tends to send prices in the direction of their previous trend — by as much as the height of the previous price rally, also known as Flagpole.

    SHIB appears to be forming the same structure.

    SHIB/USDT 12-hour price chart with Bull Pennant formation. TradingView is the source.

    The height of the SHIB Flagpole is approximately $0.00002450. As a result, if the cryptocurrency pursues an upside breakout from the Bull Pennant’s apex (the level at which its upper and lower trendlines converge), its next target would be around $0.00005200, or roughly 90% higher.

    However, according to a study conducted by Samurai Trading Academy’s Cody Hind in 2020, based on his assessment of 10 years of market data and over 200,000 trading structures, pennies are notorious for being the least reliable technical indicators.

    He discovered that in 54.87 percent of cases, Bull Pennants met their price targets.

    Fundamentals of macroeconomics

    The SHIB price nearly doubled in October, thanks in part to Tesla CEO Elon Musk’s cryptic endorsement of the Shiba Inu project, as well as reports of whale buying activity and the rise of ShibaSwap, its decentralized exchange.

    Musk, in particular, shared a photo of his Shiba Inu puppy on Oct. 4. The billionaire entrepreneur’s tweet coincided with the SHIB price increasing by more than 330 percent over the next four days, similar to how he influenced Dogecoin (DOGE) prices earlier this year.

    The increase was also influenced by reports of whale buying activity in the Shiba Inu market. For the uninitiated, Yahoo Finance reported on Oct. 5 that an unknown entity purchased 6.2 trillion SHIB in late September for approximately $44 million.

    Meanwhile, Shiba Inu’s namesake, the decentralized exchange ShibaSwap, has noticed an increase in the amount held by its liquidity pools. According to DeFi Llama data, the total value locked inside the ShibaSwap contracts as of Oct. 18 was $411.42 million, up from $253.41 million at the start of the month.

    ShibaSwap TVL on October 18, 2021. Defi Llama is the source.

    ShibaSwap’s liquidity pool managed $1.76 billion in funds at its peak in July 2021.

    Shiba Inu emerged as a product of an ongoing craze for meme cryptocurrencies, according to Ishan Arora, a hedge fund manager affiliated with Tykhe Block Ventures, adding that most people buy these tokens as a result of some influencers’ advice.

    Arora cautioned investors about the risks of investing in such one-hit wonders, but mentioned Dogecoin earlier this year for its ability to return incredible profits.

    “Early Doge investors did quite well last year, so it’s not as black and white as most want it to be.”

    Meanwhile, the crypto data tracking service Santiment has detected an increase in Shiba Inu whale transactions exceeding $100,000 in the last 24 hours, noting that such occurrences are typically bullish for SHIB.

    Shiba Inu whale transactions in excess of $100,000 Santiment is the source.

    “When these transactions come in bunches, price rises generally follow,” the platform wrote in a Monday tweet.

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