SHIB Forms a Bullish Pattern, Will Breakout Happen?

SHIB Forms a Bullish Pattern, Will Breakout Happen?

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2022-03-24 23:11:16

After an 80% correction since reaching ATH, Shiba has formed a bullish pattern and can cause a trend reversal. However, the SHIB price is facing some tough challenges on the way up.

Daily chart

On the daily time frame, Shiba Inu (SHIB) is trading inside a falling wedge, which is a textbook bullish reversal pattern. Price has tested the resistance line of the wedge several times over the past month.

Price is currently struggling with the 50-day EMA (white), which is the first hurdle on the way towards the top of the wedge.

MACD has created a bullish cross, favoring a bullish continuation.

If the price breaks above the falling wedge, a rally to the $0.0003 zone is expected. A break above this level will confirm a downtrend reversal. On the downside, the first major support lies at $0.00002.

Daily SHIB/USDT Chart | Source: TradingView

4 hour chart

On the 4-hour timeframe, after a fake breakout and over two million dollars of liquidation in the last 24 hours, SHIB price has now dropped back to the short-term static support area at $0.000023. The RSI-14 also had a false breakout and strong move towards the bearish zone (below the baseline).

If the bulls fail to defend this support (marked in green), SHIB is expected to drop to the critical support at $0.00002, seen on the daily chart.


SHIB/USDT 4-hour chart | Source: TradingView

According to Cryptopotato

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