Shiba InuSHIB) looks poised to extend its recent gains, as the daily technical pattern suggests the meme coin could be poised for a 30% rally. Furthermore, key support levels and increasing buying pressure indicate favorable conditions for a bullish move.
But can the SHIB price rise more than this week? This analysis examines the possibility.
Shiba Inu Forms a Cup and Handle Pattern
On the daily chart, BeInCrypto observed that SHIB formed a cup and handle pattern. The cup and handle is a bullish technical chart pattern that resembles the shape of a “U” (the cup) followed by a slight downward drift (the handle). This model indicates the potential continuation of an upward trend.
As seen below, the SHIB technical setup shows that the meme coin formed the cup between mid-July and early October. During this period, the token moved between $0.000013 and $0.00018.
However, the handle formed early last month and is still in place as of this writing. This suggests that SHIB Price Might Be Ready for a significant breakthrough. Therefore, if buying pressure increases, the value of the meme coin could exceed $0.000019.
Meanwhile, the Money Flow Index (MFI) indicates increasing buying pressure, further supporting the potential for a continued uptrend.
The MFI is a technical oscillator that combines price and volume data to gauge the buying and selling pressure of an asset. It ranges between 0 and 100, with values above 80 often indicating an overbought condition and values below 20 suggesting an oversold market.
When the MFI reading drops, it means that selling pressure is present. However, the indicator is currently rising, indicating that investors have decided to buy SHIB. Therefore, if it stays the same, the value of the meme coin might continue to increase.
SHIB Price Prediction: Target Target at $0.000025
Another look at the daily chart shows that SHIB faces resistance around its current value. However, with the buying pressure indicated by the MFI, it can overcome the obstacle.
BeInCrypto also used the Fibonacci retracement index to analyze how far the SHIB technical setup can take the meme coin.
Fibonacci retracement levels are horizontal lines drawn on a price chart to identify potential support and resistance levels. These levels correspond to the key Fibonacci ratios (23.6%, 38.2%, 50%, 61.8% and 100%).
If the price rebounds from these levels, it suggests that the previous trend could continue in the same direction. As seen below, SHIB price rebounded outside the level of 61.8%. Thus, the price of the token could increase by 30% to reach $0.000025.
On the other hand, if the token does not exceed $0.000020, it prediction might not come true. Instead, SHIB could drop at $0.000015.
Disclaimer
In accordance with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to providing accurate and unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult a professional before making any financial decision. Please note that our Terms and conditions, Privacy PolicyAnd Disclaimer have been updated.