Shiba Inu (SHIB), a Dogecoin-inspired cryptocurrency meme, has become one of the top performers in the traditional and crypto markets, entering a new weekly session as the price is up more than 30% in the week so far.
SHIB stock reached $0.00005155 on Tuesday, after returning from technical support around $0.0003560 earlier this week. The recovery signaled a trend reversal, especially after a big sell-off last week driven by concerns about a new COVID-19 strain called Omicron.
Catalysts for bullish graying prices
At the center of Shiba Inu’s recovery has been US-based cryptocurrency exchange Kraken, which announced on Monday that it will virtually allow trading on its platform from November 30. However, Kraken clarified that it will not offer SHIB futures and margin trading services. …
Additionally, earlier this week, Shiba Inu received positive signals from a broader recovery in major digital assets, including Bitcoin (BTC) and Ether (ETH). Bitcoin has surged more than $3,000 from its low on November 26 at around $53,500 — the day the Omicron option disrupted the traditional and crypto markets.
Correlation between SHIB/USDT and BTC/USD on the daily price chart. Source: TradingView
Meanwhile, Ether, which has a higher degree of positive correlation with Bitcoin, has grown from around $3,900 to about $4,500 in the same period.
Market triggers helped boost internet searches for the keyword “shiba-inu,” according to Google Trends over a seven-day period. This coincided with an increase in internet searches for the keyword “SHIB,” which confirmed the surge in retail interest in cryptocurrencies this week.
The search query for “SHIB” has been restored. Source: Google Trends.
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The Shiba Inu bounce has also sparked the emergence of the bull flag pattern, which sees the price of each token at around $0.000100,000.
SHIB/USDT daily price chart with a bullish flag set. Source: TradingView
In particular, the price of SHIB broke the upper trend line of the flag, which was accompanied by an increase in intraday trading volumes. Usually this asks traders to move the profit target to a level equal to the height of the previous trend.
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At the same time, SHIB also confirmed an exit from the falling wedge pattern, which is a bullish reversal indicator, as shown in the chart below.
SHIB/USDT daily price chart in a falling wedge pattern. Source: TradingView
The profit target for a wedge pattern can be found with a length equal to the maximum distance between the upper and lower trend lines, approximately $0.0003053 above the breakout point, i.e. approximately $0.000750000.