Shiba Inu is positioning for a bull flag breakout after testing the upper trendline. However, bullish momentum does not appear to be strong on the lesser timeframe and investors might have to wait a little longer for the next rally. At the time of writing, SHIB traded at $0.00003099, down by 1.87% over the last 24 hours.
Shiba Inu Daily Time Frame
A bull flag setup was active on Shiba Inu’s daily time frame. The alt’s jump from $0.00002021 to $0.00003540 formed the flag pole, whereas its down-channel between 7%-16% February completed the bullish pattern. Based on the flagpole’s length, SHIB eyed a 40% upwards breakout, setting a new local peak around $0.00004381.
The favorable outcome was backed by the daily RSI, which has traded in the bullish territory since the first week of February, and a healthy-looking Directional Movement Index, which maintained its +DI line (blue) above the -DI line (orange).
Shiba Inu 4-hour Time Frame
However, the lesser time frame suggested that bulls were not behind the potential breakout just yet. The 24-hour trading volumes were down by 19% while the squeezed nature of the Bollinger Bands indicated low market volatility. Furthermore, the RSI held around 50 over the past few sessions, showing a degree of neutrality in the current market.
The downbeat readings called for a rejection above the upper trendline or even a false breakout, should a 4-hour candle immediately close above $0.00003253. Instead, a shift back to the 61.8% Fibonacci level was more likely. Bear in mind that the abovementioned bull flag would still be active, although chances of a breakout would severely reduce the longer the pattern plays out.
Conclusion
Shiba Inu’s bull flag painted a positive long-term narrative, although its near-term looked bleak. Investors should give SHIB 24-48 hours to discover momentum for the said breakout. Until then, a new low can be expected at $0.00002637, slightly below the 61.8% Fibonacci level.