• 26 May, 2024
News

Is SHIB’s 120% Surge Imminent? Experts Eye Breakout Amid Tightening Bollinger Bands

Shiba Inu (SHIB) bulls are closely watching a potential breakout that might occur as the meme cryptocurrency has been forming a bullish flag within the H8 timeframe. This consolidation phase follows a period of decline that is truncated with a low range and lower highs forming a downward channel. Analysts, such as World of Charts, have identified this pattern as indicative of a temporary pause in SHIB’s rally, suggesting an imminent breakout.

Typically, a bull flag pattern emerges after a significant price surge, representing a period of consolidation before a potential continuation of the uptrend. World of Charts emphasizes this premise, projecting a breakout scenario for SHIB once it breaches the downward sloping channel. The anticipated breakout could propel SHIB towards previously lost highs, with a target of up to 120% bullish momentum, reclaiming $0.00005434, marking a new yearly peak.

At present, SHIB  has a 24-hour trading volume of $754,607,621, reflecting an 8.10% increase. The cryptocurrency’s current momentum suggests a potential breakout, supported by a 2-digit monthly gain. Observations of the Bollinger Bands on the daily timeframe indicate tightening, reminiscent of patterns preceding the late February rally, potentially signaling a similar price surge for SHIB.

EMA (Exponential Moving Average) with the $0.000025 marks the bullish indicator as the short-term SHIB price is currently around $0.00002474. Bulls are striving to reclaim the upper Bollinger Band at $0.00002753, a move that would strengthen short-term bullish sentiment.

SHIB/USD 1-Day price chart, Source: TradingView

Analyzing derivatives data from Coinglass reveals a 1.50% decline in SHIB’s derivatives volume, counterbalanced by a notable 14.72% spike in Open Interest, reaching $65.28 million over the last 24 hours. This surge in Open Interest, coupled with an increase in long positions, suggests growing confidence in SHIB’s potential for recovery.

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