Nov 9, 2024
6thTrade
On the daily chart, BeInCrypto has identified a cup-and-handle pattern forming for SHIB, suggesting a potentially bullish setup for the meme coin. This technical pattern, which looks like a “U” shape (the cup) followed by a slight downward drift (the handle), typically signals a continuation of an uptrend. $SHIB
In SHIB’s case, the cup portion formed between mid-July and early October as the token’s price fluctuated between $0.000013 and $0.00018. The handle, which began last month, is still in play, hinting at the possibility of a breakout. If buying momentum builds, SHIB’s price could surge above $0.000019.
Further supporting this outlook, the Money Flow Index (MFI) indicates a rise in buying pressure. The MFI is a technical tool that blends price and volume to gauge market demand, moving between 0 and 100; values above 80 suggest an overbought market, while values below 20 indicate oversold conditions. Currently, the MFI is climbing, showing increased buying interest in SHIB. Should this trend persist, SHIB could continue its upward movement.
The Fibonacci retracement levels offer additional insights. These levels are horizontal lines based on Fibonacci ratios (23.6%, 38.2%, 50%, 61.8%, and 100%) and are used to highlight potential support and resistance areas. SHIB’s price has recently bounced off the 61.8% retracement level, suggesting that it may rise further, potentially gaining up to 30% to reach a target of $0.000025.
However, if SHIB fails to breach the $0.000020 resistance, this upward projection may not materialize, and the price could instead retrace to around $0.000015.
Disclaimer: The content of this article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are highly volatile and may lead to substantial financial loss. Always perform your own research and consult a qualified financial advisor before making any investment decisions. The opinions expressed are solely those of the author and do not represent the views of the publisher or its affiliates. Investing in cryptocurrencies involves inherent risks, and past performance is not a reliable indicator of future results. Please exercise caution.