An analyst has pointed out that Shiba Inu is currently trading within a triangle pattern, which could set up a 17% move for the memecoin.
4-Hour Price Of Shiba Inu Has Been Consolidating Inside A Triangle Recently
In a new post on X, analyst Ali Martinez has talked about a pattern that has been forming on the 4-hour chart of Shiba Inu recently. The pattern in question is a triangle from technical analysis (TA). This type of channel emerges when the price of an asset observes consolidation between two trendlines that converge at some common point. The upper line of the pattern is likely to be a source of resistance, while the lower one is a source of support.
There are a few different types of triangles in TA, with the most popular ones being the ascending, descending, and symmetrical variations. The arrangement of the trendlines dictates which type of asset the asset is following.
When one of the trendlines is parallel to the time-axis, one of the former two appears. The ascending variation forms when consolidation is toward a net upside. That is, when the upper line is flat and the lower one is sloped upward. Similarly, the descending one involves the opposite orientation.
The third type, the symmetrical triangle, has both of the trendlines angled at an equal and opposite slope. In this variation, consolidation narrows down to a point in a sideways manner.
In triangle patterns, a breakout from one of the trendlines often ends up being around the same length as the height of the triangle (that is, the distance between the upper and lower line at their extreme).
Now, here is the chart shared by the analyst that shows the triangle that Shiba Inu’s 4-hour price has been moving inside over the last few weeks:
From the graph, it would appear that the triangle that Shiba Inu has been inside recently is of the descending type, as its price has overall been moving down over this timeframe. Based on the pattern, Martinez has noted that SHIB could be heading toward a 17% swing.
But which way could this move appear in? Generally, a descending triangle is considered to be a continuation pattern for a bearish trend. It can also, however, sometimes act as a reversal pattern, with a breakout coming in the upward direction instead.
At present, Shiba Inu is sitting near the midway point between the two trendlines. As such, it only remains to be seen which of the two lines it might visit next. As the consolidation lengthens, the triangular channel is only getting tighter, so one way or the other, a break may occur soon.
SHIB Price
At the time of writing, Shiba Inu is trading around $0.00001436, down about 2% in the last seven days.
