Shiba Inu (SHIB) price surged more than 10% in one day amid broader bullish moves across meme cryptocurrencies in the past 24 hours. But will the price of SHIB continue to rise?
SHIB Price Follows Dogecoin Gains
On April 4, SHIB price reached $0.00001159 a day after recovering from its local low of $0.00001049, an increase of 10.5%. Still, the meme-token underperformed most of its rivals, including Dogecoin (DOGE), which was up more than 30% in the same period.
So far this year, SHIB and DOGE’s gains are nearly identical, at around 38%.
The price of SHIB began to rise after Twitter, owned by self-proclaimed Dogecoin supporter Elon Musk, replaced its iconic blue bird logo with the Dogecoin Shiba Inu symbol. SHIB/USD has similarly rallied in the past due to Musk’s mentions of Dogecoin on Twitter.
Interestingly, in October 2021, Musk clarified that he does not own Shiba Inu.
A prolonged Shiba Inu price rally is unlikely
From a technical standpoint, SHIB has been consolidating higher within what appears to be a bear flag pattern, which may limit its ability to reflect a 30% price rally similar to Dogecoin.
A bear flag is a bearish continuation pattern that forms when the price tends to rise briefly within a parallel ascending channel after suffering sharp declines. It resolves after the price breaks below the lower trend line on strong volumes and falls by as much as the height of the previous downtrend (flag pole).
Starting on April 4, SHIB tests the upper trend line of the flag (near $0.00001160) for a possible pullback towards the lower trend line (near $0.00001050) in April.
A further close below the lower trend line could trigger the bear flag breakout scenario, with its downside target near $0.00000883 in April, more than 20% below current price levels.
On the contrary, a break above the upper trend line of the flag could invalidate the bearish setup. Thus, SHIB’s bullish target appears to be at its long-term downtrend line resistance, around $0.00001400 in April, 25% above current prices.
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