Technical analysis suggests that Shiba Inu is currently at a critical price point that could lead to a massive 400% upside. According to an analyst from the TradingView platform, the current price action of the Shiba Inu breed is indicating a full breakout bull flag formation. If this intriguing prediction were to come true as expected, it would put the meme-inspired cryptocurrency on a steady path back to its current record high.

The Shiba Inu price is waiting for a break above the bull flag

By entering the TradingView platform, the analyst (no worries) revealed an intriguing angle after analyzing the Shiba Inu price action since the beginning of the year. The analyst highlighted the significant correction by examining the 5-day candlestick price chart and noting that Shiba Inu has retreated approximately 75% from its yearly high of $0.00003595. This correction was marked by a sequence of lower highs and lows, which led to the formation of a bull flag pattern.

The analyst pointed out several reasons why taking a long position on Shiba Inu is currently a favorable opportunity. The most critical factor is a break above a bull flag pattern, which often signals a continuation of an uptrend after a period of consolidation.

Additionally, the Relative Strength Index (RSI) also provided a bullish signal. For the first time since April, the RSI indicator broke the downtrend line and is currently showing a clear upward trend. The RSI on the 5-day chart is currently at 54.7, reflecting the trend of investor inflows.

While there is a possibility of SHIB retesting the bull flag pattern, the analyst stressed that if SHIB experiences a second impulsive move, it could trigger a renewed rally similar to what was seen during the last major breakout. During the previous surge, the price of SHIB increased by approximately 400%, reaching a peak of $0.00003595.

If history were to repeat itself under similar conditions, Shiba Inu could see its price break above its current 2024 high and reach a target level ranging from $0.00006204 to $0.000074.

Bullish outlook for SHIB

Shiba Inu price action over the last seven days has been highlighted by intense variability. From October 7 to October 10, the SHIB price showed a downward trend, reaching a low of $0.00001613. From this point to the time of writing, SHIB has gained approximately 11.84%, although it has been rejected multiple times at the $0.00001809 level.

At the time of writing, SHIB is trading at $0.00001809. Another analyst, Javon Marks, repeats back to SHIB highest ever. According to Marx’s analysis, based on the earlier break of the falling wedge pattern, SHIB is now free and could rise to $0.000081.

Featured image created with Dall.E, chart from Tradingview.com