Shiba Inu (SHIB), looks ready for a big rally based on current market dynamics, according to experts. They shared that the Shiba Inu price chart was creating what appeared to be a bullish flag pattern.
Source: X
The bullish flag pattern is characterized by a little bit of downward consolidation after a big upward price move akin to a flag to a pole.
The flag is a period of consolidation that makes up the flagpole behind the initial price surge that forms the flagpole.
Shiba Inu is Looking More Bullish Now Than Ever
Looking at other analysts’ opinions, Javon Marks stated that Shiba Inu (SHIB) is once again at the center of attention. Its daily chart, when writing, showed promising signs of entering another bullish phase.
The expert was buzzing about the potential for a significant price surge after SHIB recently breached key resistance levels. According to his recent analysis, the meme coin could be on the verge of a major rally.
Source: X
He stated that it aimed for a breakout target of $0.000081, which represents a potential increase of over 216%. If the momentum continues, SHIB investors could witness a price explosion that more than triples its current valuation.
Current Market Struggles
However, Shiba Inu’s market performance has been somewhat restrained. At present, the trading of SHIB has remained at $0.00002749, up with an 11.31 % price increase in the last day.
The market cap stood healthy at about $16.19 billion. Pundits anticipated the upward push in SHIB’s price and daily trading volume.
The meme coin eventually picked up upward momentum during the 24-hour time frame. Shiba Inu charts showed that SHIB has been in a consolidation phase after a significant upward surge and being “locked in” within a very narrow range of trading.
Price fluctuations were confined in a consolidation box highlighted on the chart. These seem to be consolidation bounds.
If the forces of supply and demand were close in balance, perhaps there was a period of market indecision in this consolidation.
However, at 51.69, we also notice that the Money Flow Index. A value of around 50 on the MFI implies a neutral market sentiment and is devoid of clear directional bias.
It reveals price consolidation in line with the look of the market that it is neither overbought nor oversold.
4-hour SHIB/USD Chart | Source: TradingView
Time will tell whether what we experience is the market’s way of showing its uncertainty. The consolidation pattern and the MFI’s neutral stance support this, or if this is purely margin expansion.
Perhaps, traders are waiting for the catalyst or a breakout from the range to push the price out to a new high. Critical levels to watch for breakout or breakdown potential will be the resistance at the upper boundary and support at the lower boundary of the consolidation box.
A close above the upper consolidation boundary for some time now would signal the continuation of the bullish trend. Alternatively, a break below the lower bound of the consolidation box might suggest a possible bearish reversal.
Read the full article here
