Since Shiba Inu (SHIB) reached a local high of $0.00001193 on December 16 last year, the price has been in a downward trend characterized by a series of lower highs and lower lows. However, prominent cryptocurrency analyst Ari Martinez has now spotted a rare bullish signal that could put an end to this trend.
Shiba Inu Price Flashes Rare Bullish Signal
A recent analysis by Martinez (@ali_charts) suggests that Shiba Inu (SHIB) may be heading for a bullish move based on the TD Sequential indicator. The chart shared by Martinez via X (formerly Twitter) shows the movement of SHIB against Tether (USDT) on the 3-day time frame on the Binance exchange.
The TD Sequential Indicator is a tool used to identify potential price points at which asset prices may experience an inflection point—a reversal or continuation of the current trend. On Martinez’s chart, the indicator is showing a “buy signal,” specifically the 9 in green. This suggests that the current bearish trend may be paused and a bullish trend may follow.
This chart shows a series of green and red candlesticks representing SHIB’s price movement over time. Green candlesticks indicate periods when the closing price is higher than the opening price, while red candlesticks indicate the opposite. The appearance of a green nine indicates that after nine consecutive periods of price declines, the trend may be exhausted and buyers may soon enter the market.
Martinez noted that SHIB price is currently hovering near the 0.5 Fibonacci retracement level at around $0.009281. Fibonacci retracement levels are horizontal lines that indicate where possible support and resistance levels may lie.
These are important because they can indicate areas where asset prices may experience a correction or continuation. The chart also shows Fibonacci retracement levels at 0.236 ($0.010696), 0.382 ($0.009913), 0.618 ($0.008648), and 0.786 ($0.007747).
Martinez’s chart analysis highlights the potential for SHIB to rise towards the $0.010 mark and even extend gains to $0.011. These price levels are important as they coincide with the 0.236 and 0.382 Fibonacci retracement levels respectively, which could act as resistance points. A breakout of these levels could validate the bullish signal provided by the TD Sequential indicator.
Marinez said: “The TD Sequential Indicator has proven to be very accurate in predicting Shiba Inu price movements. It is currently giving out a buy signal, suggesting that SHIB may be preparing for a move higher. Keep an eye on it as SHIB may climb towards $0.010 , maybe even $0.011!”
Need more confirmation
With the cryptocurrency market closely watching, the bullish signal from the Shiba Inu at this time is worth noting. However, as with any market prediction, it is important to note that technical indicators are not infallible and should be viewed as part of a broader strategy that includes fundamental analysis, market sentiment, and other technical indicators.
Looking at the 4-hour chart of SHIB/USD, the price is still in a descending parallel trend channel. Yesterday, Tuesday, Shiba Inu price was once again rejected at the top of the trend channel. A breakout (around $0.00000930) could be crucial to strengthen the TD9 signal.
Featured image created with DALL·E, chart from TradingView.com
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