The upside move in the Shiba Inu instruments also comes in the wake of broader price rebound across leading crypto assets, including Bitcoin.
Shiba Inu (SHIB), a Dogecoin-inspired meme cryptocurrency, emerged as one of the best performers across traditional and crypto markets entering the new weekly session as its price climbed by over 30% week-to-date.
SHIB’s price reached $0.00005155 Tuesday after bouncing from its technical support near $0.00003560 at the beginning of this week. Its rebound signaled a shift in trend, especially after the last week’s broader market selloff, induced by concerns related to the new Covid19 strain, dubbed Omicron.
Bullish catalysts for Shiba Inu price
At the core of Shiba Inu’s upside retracement was Kraken, a U.S.-based cryptocurrency exchange that announced Monday that it would effectively enable SHIB trading on its platform from Nov. 30. However, Kraken clarified that it would not offer SHIB futures and margin trading services.
— Kraken Exchange (@krakenfx) November 29, 2021
Additionally, at the beginning of this week, Shiba Inu received bullish cues from a broader recovery across the top digital assets, including Bitcoin (BTC) and Ether (ETH). Bitcoin rallied by more than $3,000 from its Nov. 26 low near $53,500 — the day the Omicron variant caused turbulence across the traditional and crypto markets.
Correlation between SHIB/USDT and BTC/USD on a daily price chart. Source; TradingView
Meanwhile, Ether, which has a higher degree of positive correlation with Bitcoin, surged from nearly $3,900 to around $4,500 in the same period.
The market catalysts helped boost internet searches for the keyword “Shiba Inu,” data on Google Trends showed on a seven-day timeframe. That coincided with a spike in internet queries for the keyword “SHIB,” underscoring a recovering retail interest in the cryptocurrency this week.
‘SHIB’ interest searches recover. Source: Google Trends
SHIB price chart technicals
Shiba Inu’s latest rebound also activated a Bull Flag pattern that projects its price per token at around $0.00010000.
SHIB/USDT daily price chart featuring Bull Flag setup. Source: TradingView
In detail, the SHIB price broke above the Flag’s upper trendline, accompanied by a rise in intraday trading volumes. That typically prompts traders to shift their profit target to a level that is at length equal to the previous uptrend’s height.
Simultaneously, SHIB also confirmed breaking out of a Falling Wedge pattern, a bullish reversal indicator, as shown in the chart below.
SHIB/USDT daily price chart featuring Falling Wedge pattern. Source: TradingView
The profit target of the Wedge pattern can be found at the length equal to the maximum distance between its upper and lower trendline — about $0.00003053 above the breakout point, i.e., around $0.00007500.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.