Shiba Inu (SHIB) Appreciates 30% Following Robinhood Listing Rumor and Bullish Chart Pattern

Shiba Inu (SHIB) appears to be preparing for a bullish breakout as a falling wedge pattern begins to form.

The SHIB price has been trending lower within an area defined by two contracting trend lines, while accompanying a decline in trading volume. This shows that investors have been less concerned about the downward trend.

As a result, falling wedges are often an ideal springboard for a breakout to the upside once price closes above the upper trendline of the structure. On Thursday, SHIB showed signs of following a similar bullish breakout.

SHIB/USDT daily price chart with a falling wedge. Source: Fiery Trading

Notably, the token briefly closed above the upper trendline of the falling wedge, reaching an intraday high of $0.00003290. The upside move raised expectations that SHIB would continue its uptrend in the coming sessions, with analysts at Fiery Trading noting that an ongoing bullish pullback across the cryptocurrency market would further fuel the altcoin’s bullish bias.

Analysts said,

“With the entire cryptocurrency market seeing strong bullish moves, expect SHIBA to follow. This token is currently trading near the upper resistance of the pattern, so a breakout could happen soon. Look for a daily close above of resistance”.

The next bullish target for SHIB

A decisive move above the upper trendline of the falling wedge could have traders looking for a bullish confirmation near $0.00003929.

In a nutshell, if SHIB price breaks above $0.00003929, a previous resistance level, traders could end up placing bullish bets towards the level that is equal to the maximum gap between the trend line top and bottom ($0.00004240).

SHIB/USDT daily price chart with a falling wedge setup. Source: TradingView

As a result, the potential breakout of the falling wedge could put the SHIB price on track to $0.00008026, as shown in the chart above. Conversely, a pullback move from the upper trendline of the wedge could see SHIB retest the lower trendline of the structure around support at $0.00002350.

Possible Robinhood Appearance Supports Current Rally

SHIB’s bullish setup emerged mainly after it bounced almost 30% in three days.

At the core of SHIB’s sharp pullback were some fundamental catalysts. Among them, the speculation on the listing of the token on Robinhood, a trading application without commissions with more than 14 million dollars of average daily volume.

Additionally, SHIB also rose in line with a rebound in crypto markets on Wednesday, with major digital asset Bitcoin (BTC) rallying more than 12% and Ether (ETH) rising nearly 18% in the past three days.

While SHIB’s price is likely to skyrocket due to excessive speculation, Vladimir Kardapoltsev, CEO of blockchain wallet company PointPay, noted that its potential to record further gains in 2022 was huge due to the recent pattern of investor retention. of SHIB.

“It is worth mentioning that in just over five weeks, the average holding length of Shiba coins on Coinbase Global has jumped from 6 days to 32 days,” he told Cointelegraph, adding that “people have been hoarding SHIB due to Shiba Inu’s willingness to become more than just a meme token similar to Dogecoin.”

Kardapoltsev said:

“There are several critical criteria that investors and potential buyers should consider when determining the price of SHIB in 2022. Shibarium, the Oshiverse video game, and ShibaSwap have all contributed to the Shiba Inu’s price increase, putting it ahead of competitors such as Dogecoin, which is still being a meme currency game with minimal development.”

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should do your own research when making a decision.

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