Shiba Inu Caught in Triangle Pattern: Is a 17% Movement Ahead?

A market analyst has observed that Shiba Inu is presently exhibiting a triangular pattern, which may facilitate a 17% price movement for the cryptocurrency.

Shiba Inu’s 4-Hour Price Action Has Been Within a Triangle Pattern Recently

In a recent update on X, analyst Ali Martinez discussed a triangular formation appearing on Shiba Inu’s 4-hour chart. This triangle, as characterized by technical analysis, indicates a period of consolidation where the asset’s price fluctuates between two converging trendlines. The upper trendline likely represents a resistance level, while the lower trendline serves as a support level.

Technical analysis identifies several varieties of triangle patterns, with the most common being ascending, descending, and symmetrical types. The orientation of the trendlines helps determine the specific classification of the triangle.

When one trendline runs parallel to the time axis, it can signal the emergence of either an ascending or descending triangle. An ascending triangle forms when the price consolidates upward, featuring a flat upper line and a sloping upward lower line. In contrast, a descending triangle displays the opposite configuration.

The symmetrical triangle, on the other hand, consists of two trendlines that are angled evenly but in opposing directions, leading to a narrowing shape as price consolidates horizontally.

Typically, a breakout from a triangle pattern occurs with a movement that approximately matches the height of the triangle, calculated as the distance between the upper and lower trendlines at their widest points.

The following chart illustrates the triangular formation within which Shiba Inu’s price has been operating over recent weeks:

The chart suggests that Shiba Inu is in a descending triangle, as its price trend has generally been downward during this period. Based on this setup, Martinez indicated that SHIB might experience a 17% price shift.

The direction of this potential movement remains uncertain. Typically, a descending triangle is recognized as a continuation pattern within a bearish market. However, it can occasionally function as a reversal pattern, leading to an upward breakout instead.

Currently, Shiba Inu’s price is positioned approximately midway between the two trendlines. It remains to be seen which boundary will be tested next. As the consolidation period extends, the triangular formation is tightening, indicating that a breakout may occur soon in one direction or the other.

Current SHIB Price

As of the latest update, Shiba Inu is trading at approximately $0.00001436, reflecting a decline of around 2% over the past week.