The price of the Dogecoin-inspired meme cryptocurrency has been stabilizing beneath a structure resembling a Bull Pennant. In 2021, the Shiba Inu (SHIB) market will be in a robust bull market. One key continuation pattern on its longer period charts highlights the potential for a further 90% upside moves ahead.
SHIB increased more than 1,250 per year to date (YTD) to reach a yearly high of $0.00003528 (data from Binance) on Oct. 8. Later, the cryptocurrency succumbed to a profit-taking mentality, resulting in a 41.50 per cent price drop to $0.00002060. However, bulls began to accumulate SHIB near the mentioned low level. A rebound began, and the price increased by more than 55% to $0.00003200. Overall, the SHIB price continued to create lower highs and higher lows in the following sessions. It established a Triangle structure that resembled a Bull Pennant.
Analysts consider Pennants to be bullish continuation patterns, which means that their formation. Combined with dropping trade volumes, it tends to drive prices in the direction of their prior trend by as much as the height of the initial price surge, also known as Flagpole. The size of the SHIB Flagpole is approximately $0.00002450. As a result, if the cryptocurrency pursues an upside breakout from the Bull Pennant’s apex, its next objective would be about $0.00005200, or roughly 90% higher.
However, according to a study completed by Samurai Trading Academy’s Cody Hind in 2020, based on his review of 10 years of market data and over 200,000 trading setups, pennies are known for being the minor trustworthy technical indicators.
Macro fundamentals of Shiba Inu
In October, the price of SHIB nearly doubled, thanks in part to Tesla CEO Elon Musk’s enigmatic endorsement of the Shiba Inu project, as well as the rise of its decentralized exchange ShibaSwap.
Musk, in particular, shared a photo of his Shiba Inu puppy on Oct. 4. The wealthy entrepreneur’s tweet coincided with the SHIB price increasing by more than 330 per cent over the next four days, similar to how he affected Dogecoin (DOGE) prices earlier this year. The increase was also influenced by stories of whale buying activity in the Shiba Inu market. For the uninitiated, Yahoo Finance reported on Oct. 5 that an unknown organization purchased 6.2 trillion SHIB in late September for approximately $44 million.
Meanwhile, the decentralized exchange ShibaSwap, which bears Shiba Inu’s name, has witnessed an increase in the amount held by its liquidity pools. According to DeFi Llama statistics, 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.
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