Shiba Inu (SHIB) appears to be ready to continue its upward trend. According to the daily technical analysis, the meme coin has the potential to rise by 30%. Additionally, the key support levels and increasing buying pressure indicate favorable conditions for the uptrend.
However, will SHIB's price be able to rise even further this week? This analysis examines that possibility.
Shiba Inu Forms a 'Cup and Handle' Pattern
On the daily chart, BeInCrypto observed that SHIB has formed a cup and handle pattern. The cup and handle is a bullish technical chart pattern characterized by a "U" shape (the cup) followed by a slight downward movement (the handle). This pattern suggests the sustainability of the uptrend.
As can be seen below, the technical setup for SHIB shows that the meme coin formed a cup from mid-July to early October. During this period, the token moved between $0.000013 and $0.00018.
The handle was formed in early last month and has been maintained since then. This suggests that SHIB's price may be preparing for a crucial breakout. Therefore, if the buying pressure increases, the value of the meme coin could exceed $0.000019.
Meanwhile, the Money Flow Index (MFI) indicates that buying pressure is increasing, further supporting the sustainability of the uptrend.
MFI is a technical indicator that combines price and volume data to evaluate the buying and selling pressure on an asset. It moves between 0 and 100, with values above 80 indicating an overbought state and values below 20 indicating an oversold market.
A decline in the MFI index would indicate the presence of selling pressure. However, the current indicator is rising, indicating that investors have decided to buy SHIB. Therefore, if this condition persists, the value of the meme coin could continue to rise.
SHIB Price Prediction: Target at $0.000025
Looking back at the daily chart, SHIB is currently facing resistance around its current value. However, the buying pressure indicated by the MFI can help it overcome this obstacle.
BeInCrypto used the Fibonacci retracement levels to analyze how far the technical setup of SHIB can propel the meme coin.
Fibonacci retracement levels are horizontal lines drawn on the price chart, identifying potential support and resistance levels. These levels correspond to the major Fibonacci ratios (23.6%, 38.2%, 50%, 61.8%, 100%).
If the price bounces off these levels, it suggests that the previous trend may continue in the same direction. As can be seen below, SHIB's price has rebounded from the 61.8% level. Therefore, the token's price could rise by 30% to reach $0.000025.
However, if the token fails to break above $0.000020, this prediction may not materialize. Instead, SHIB could drop to $0.000015.
