Shiba Inu (SHIB) fetches 30% gain on Robinhood listing rumor and bullish chart pattern

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Shiba Inu (SHIB) appears to be preparing for a bullish breakout as a descending wedge pattern begins to form.

SHIB price trended lower in an area defined by two contracting trend lines while accompanying a decline in trading volume. This shows that investors have been less concerned about the downtrend.

As a result, falling wedges are usually an ideal springboard for an upside breakout once price closes above the upper trendline of the pattern. On Thursday, SHIB showed signs of following a similar topside break.

SHIB/USDT daily price chart with a falling wedge. Source: Ardent Trade

Notably, the token briefly closed above the upper trendline of the falling wedge, reaching an intraday high of $0.00003290. The upward move raised anticipation that SHIB would continue its upward trend over the coming sessions, with Fiery Trading analysts noting that an ongoing bullish retracement in the crypto market would further reinforce the bullish bias of the altcoin.

Analysts said,

“With the entire crypto market seeing strong upside moves, expect SHIBA to follow suit. This token is currently trading near the upper resistance of the pattern, so a breakout may occur soon. Look for a daily close above resistance.

The next upside target for SHIB

A decisive move above the upper trendline of the falling wedge could draw traders’ attention to a bullish confirmation near $0.00003929.

Simply put, if SHIB price breaks above $0.00003929, a previous resistance level, traders may end up placing upside bets towards the level that is a distance equal to the maximum gap between the line. upper and lower trend ($0.00004240).

SHIB/USDT daily price chart with a descending wedge pattern. Source: Trading View

As a result, the potential lowering of the falling wedge could put the price of SHIB on its way towards $0.00008026, as shown in the chart above. Conversely, a pullback from the upper trendline of the wedge could cause SHIB to retest the lower trendline of the structure around the $0.00002350 support.

Potential Robinhood roster backs current rally

SHIB’s bullish setup appeared mostly after rebounding nearly 30% in three days.

At the heart of SHIB’s strong retracement were a few fundamental catalysts. These include speculation about the token’s listing on Robinhood, a commission-free trading app with over $14 million in average daily volume.

Additionally, SHIB also rose in line with a rebound in crypto markets on Wednesday, with leading digital asset Bitcoin (BTC) rebounding over 12% and Ether (ETH) rising almost 18% in the past three last days.

Related: Five coins that saw huge gains in 2021

Although it is likely that SHIB’s price has exploded due to excessive speculation, Vladimir Kardapoltsev, CEO of blockchain wallet company PointPay, noted that its potential to register more gains in 2022 is huge due of SHIB’s recent investor ownership pattern.

“It’s worth mentioning that in just over five weeks, the average holding time for Shiba coins on Coinbase Global has gone from 6 to 32 days,” he told Cointelegraph, adding that “people have hoarded SHIB due to Shiba Inu’s desire to become more than just a Dogecoin-like token.”

Kardapoltsev said,

“There are several critical criteria investors and potential buyers should consider when determining the price of SHIB in 2022. putting it ahead of competitors such as Dogecoin, which is still a game of meme currency with minimal development.”

The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.