Shiba Inu (SHIB) fetches 30% gain on Robinhood listing rumor and bullish chart pattern
Shiba Inu (SHIB) seems to be preparing for a bullish breakout as a falling wedge pattern begins to form.
The price of SHIB has been trending lower inside an area defined by two contracting trendlines while accompanying a decline in trading volume. That shows that investors have been less concerned about the downtrend.
As a result, falling wedges typically provide an ideal springboard for an upside break once the price closes above the structure's upper trendline. On Thursday, SHIB showed signs of following a similar topside break.
Notably, the token briefly closed above the falling wedge's upper trendline, hitting an intraday high of $0.00003290. The upside move raised anticipation that SHIB would continue its trend higher in the coming sessions, with Fiery Trading analysts noting that an ongoing bullish retracement across the crypto market would further boost the altcoin's upside bias.
The analysts said,
A decisive move above the falling wedge's upper trendline could have traders eye for a bullish confirmation near $0.00003929.
Simply put, if the price of SHIB breaks above $0.00003929, a previous level of resistance, traders may end up placing upside bets toward the level that comes at a distance equal to the maximum gap between the upper and lower trendline ($0.00004240).
As a result, the potential falling wedge breakout could put the price of SHIB en route to $0.00008026, as shown in the chart above. Conversely, a pullback move from the wedge's upper trendline could have SHIB retest the structure's lower trendline around $0.00002350 support.
SHIB's bullish setup emerged primarily after it rebounded by nearly 30% in three days.
At the core of SHIB's sharp retracement were a few fundamental catalysts. These include
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