Shiba Inu (SHIB) opened the new weekly session in the green; extending its bullish retracement move from the previous week’s low of $0.00002058.
On Oct. 11, the SHIB price reached an intraday high of $0.00002907, netting over 40% returns from its ongoing rebound trend. As a result; the Dogecoin-inspired meme cryptocurrency aimed for a long run up to its technical resistance level near $0.00002978; as shown in the chart below.
Extended rally ahead?
The Shiba Inu chart also revealed traders’ intent to buy SHIB tokens; when the price tested the 20-4H exponential moving average (20-4H EMA; the green wave) as support.
According to Santiment data; the cryptocurrency dropped by more than 40%; on Thursday after Shiba Inu’s addresses worth 1M to 10M SHIB dumped over 31 billion tokens; the largest dump in six months. However, the price began to recover as traders began to accumulate SHIB tokens near the 20-4H EMA.
Furthermore, Shiba Inu’s ongoing retracement was influenced by a possible correlation between the 1M-10M SHIB address dump and its price. According to Santiment; the Shiba Inu price always rises after SHIB millionaires sell their holdings, as shown in the chart below.
Retail sentiment moons
The bullish retracement in the SHIB market coincided with a rising number of internet queries for the keyword “Shiba Inu;” as per Google Trends
On a 12-month interest timeframe; web data shows a rise in the Shiba Inu trend in the United States, indicating a booming retail interest. The trend is approaching the peak popularity score of 100; which was last seen in the second week of May, at 92. It indicates that more internet users are looking for Shiba Inu information.
Nonetheless; the number of internet searches for the keyword; “how to buy Shiba Inu” was only 18 during the same time period. Nonetheless, interest increased by 260 percent over the previous week.
Tale of two indicators
On the technical front; SHIB’s recent rebound appears to have invalidated a bearish setup that Cointelegraph discussed in one of its previous coverages.
The SHIB price; in particular; broke bullish out of an otherwise bearish Descending Triangle pattern by closing above the structure’s upper trendline with an increase in trading volume. While the breakout is still pending confirmation, it has increased the likelihood of a bullish continuation.
The reason for the extended upside is a sham Bull Pennant; which typically sends the price up by the height of the previous upside move. In other words, if SHIB breaks above its Bull Pennant pattern, its price could rise to $0.00004713.
Meanwhile, if the price falls back into the pennant range, the Descending Triangle setup may be reactivated. As a result, SHIB may target a correction to $0.00002195, followed by a negative breakout move to $0.00001000.
The author’s views and opinions are solely his or her own and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk; therefore, before making a decision, you should conduct your own research.
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