Shiba Inu (SHIB) is in a very strong beef market in 2021 and a large continuation pattern appears on the time frame for a longer range for a further 90% bullish progress.
Specifically, SHIB shares rose more than 1250% year-on-year, hitting an annual high of $ 0.00003528 (Binance data) on October 8. Price correction up to $ 0.0002060.
But the bulls started to collect SHIB near the aforementioned low point. A rebound followed, and the price rose more than 55% to $ 0.00003200, leading to a new round of sales. Overall, the SHIB reward continued to form lower peaks and troughs in subsequent sessions, forming a triangular structure that looked like a bullish pennant.
Analysts view pennants as a bullish continuation pattern, which means that their formation, along with lower trading volumes, tends to steer prices in the direction of their previous trend – much like the previous rise in prices, also known as the flagpole.
It looks like SHIB has formed the same structure.
SHIB / USDT 12-hour chart with Bull Pennant setup. Source: TradingView
SHIB mast height is approximately $ 0.00002450. Given that the cryptocurrency will follow the upside breakout from the Bull Pennant peak (the level where the upper and lower trendlines converge), the next target will be around $ 0.00005200, which is almost 90% higher.
However, pennants are known to be the worst reliable technical indicator, at least according to a 2020 study by Samurai Trading Academy Cody Hind based on ten years of market data and over 200,000 trading patterns.
The Bull Pennants were found to achieve their target values 54.87% of the time.
SHIB’s price nearly doubled in October, due in part to Tesla CEO Elon Musk’s cryptic endorsement of the Shiba Inu project, as well as reports of whale buying activity and the emergence of the ShibaSwap decentralized exchange.
In particular, on October 4, Musk posted a photo of a Shiba Inu puppy. The billionaire’s tweet coincided with a more than 330% increase in the SHIB price over the next four days, reminding us of how this has impacted Dogecoin (DOGE) prices in the past. … this year.
This jump was also recorded in reports on the purchasing power of whales in the Shiba Inu market. Initially, a Yahoo Finance report dated October 5 highlighted that at the end of September, an unknown organization bought $ 6.2 trillion worth of chips for $ 44 million.
Related Topics: Shiba Inu Up 40% Despite Strong SHIB Whale Sales
Meanwhile, the ShibaSwap decentralized exchange, of the same name to Shiba Inu, has found an increase in the amount held by liquidity pools. On October 18, the total value of ShibaSwap contracts was $ 411.42 million, up from $ 253.41 million earlier this month, according to data provided by DeFi Llama.
ShibaSwap TVL as of October 18, 2021 Source: Devi Lama.
At its peak in July 2021, ShibaSwap managed $ 1.76 billion in liquidity pool.
Ishan Arora, a hedge fund manager affiliated with Tykhe Block Ventures, told Yahoo Finance that the shiba inu originated as a product of an ongoing craze for cryptomemes, adding that most people buy these tokens as a result of the advice of some influencers.
Arora warned investors about the dangers of investing in such success, but mentioned Dogecoin for its incredible profitability earlier this year.
“The early investors in Doge have done well last year, so it’s not as black and white as many would like.”
Meanwhile, crypto data tracking service Santiment has found more than $ 100,000 in transactions with Shiba Inu whales in the past 24 hours, indicating that this phenomenon is generally optimistic for SHIB.