Shiba Inu Early-Stage Bull Pattern Suggests Potential 40% – 135% Surge

Shiba Inu (SHIB) has been showing signs of recovery after hitting a multi-month low of $0.00001090 earlier in March. As of now, the price has rebounded to around $0.000014, marking a 32% increase from the March low. This surge comes amid a significant rise in SHIB’s burn rate, which soared by over 34,655% on Thursday after a user burned 1 billion SHIB, and another large burn occurred earlier this month.

The increase in burns contributes to making SHIB a deflationary asset, with over 410 trillion tokens burned over time, leaving the circulating supply at about 584 trillion. The recovery in SHIB’s price also coincides with Bitcoin and other altcoins showing signs of rallying, with Bitcoin rising from $76,000 to $87,000 and the overall market nearing a $3 trillion valuation.

Technical Indicators Suggest a Bullish Outlook

Technical analysis reveals a promising short-term outlook for SHIB. The price has formed a falling wedge pattern on the daily chart, which is considered a bullish reversal pattern signaling the end of a downtrend. This pattern is characterized by two descending and converging trendlines, indicating a period of consolidation before a breakout. The breakout occurred as SHIB crossed above the wedge’s upper boundary, confirming bullish momentum. Additionally, the price has risen above the 25-day moving average, further strengthening the bullish case.

Based on the falling wedge pattern, SHIB has an initial target of $0.00002020, representing a 40% increase from its current price. If the price continues to perform positively, there is a possibility that SHIB could reach even higher levels, potentially targeting $0.0000334, which would imply a 135% gain from current levels. This is contingent on the formation of a double-bottom pattern at the $0.000010 level.

Risk of a Bearish Reversal

However, if SHIB’s price were to drop below the $0.000010 level, it could invalidate the bullish pattern and potentially signal a bearish reversal. Therefore, the key support level remains critical for the continuation of the bullish trend.

In summary, Shiba Inu is showing strong signs of recovery, and technical patterns suggest it could see substantial gains, with initial targets pointing to a 40% rise, potentially even reaching 135% if further bullish patterns materialize. However, market fluctuations remain a risk, and a drop below key support levels would negate the bullish outlook.