The meme-inspired cryptocurrency Shiba Inu ($SHIB) has seen its price drop by more than 8% over the past week amid a wider cryptocurrency market correction that has seen the price of Bitcoin drop to $65,900 at the time of writing.
A popular cryptocurrency analyst, however, has recently revealed he believes SHIB could be poised for renewed growth based on technical analysis of its 6-hour chart. On the microblogging platform X (formerly known as Twitter), Captain Faibik suggested the chart show a symmetrical triangle pattern, often interpreted by traders as a bullish signal.
A symmetrical triangle pattern is formed by drawing trendlines, one falling and another one rising, along a converging price range. To confirm a valid break and not a false one, traders should look for a surge in volume and at least two consecutive closes beyond the trendline, according to Investopedia.
Symmetrical triangles usually indicate that the price will continue in the same direction as before the triangle formed. Therefore, traders would expect the price to break upward if a symmetrical triangle follows an uptrend.
The analyst pointed to a potential retest that, if successful, could propel the token towards a significant price increase that would, per his words, see SHIB’s price potentially double in value by mid-December, reaching an estimated price of $0.000044.
As CryptoGlobe reported, last month the popular meme-inspired cryptocurrency lost its position among the top 10 cryptocurrency by market capitalization as its price kept on underperforming the wider market.
According to available data, SHIB currently has a market capitalization of $15.5 billion, making it the 12th largest cryptocurrency by the metric, behind Telegram’s Toncoin and its $17.5 billion market capitalization, and Avalanche’s $AVAX, which has a $17.7 billion market capitalization.
Featured image via Unsplash.
