An analyst has pointed out that Shiba Inu is currently being traded in a triangular pattern that could set up a 17% movement for the memecoin.
Price of 4 hours from Shiba Inu has recently been consolidated in a triangle
In a new one after On X, analyst Ali Martinez spoke about a pattern that recently formed on the 4-hour graph of Shiba Inu. The pattern in question is a triangle of technical analysis (TA). This type of channel comes to the fore when the price of an active consolidation between two trend lines that come together at a common point. The upper line of the pattern is probably a source of resistance, while the bottom is a source of support.
There are a few different types of triangles in TA, where the most popular are the rising, falling and symmetrical variations. The arrangement of the trend lines determines which type of asset is actively following.
When one of the trend lines is parallel to the time axis, one of the former two appears. The rising variation occurs when consolidation is in the direction of one upside down. That is, when the top line is flat and the lower one is deposited upwards. Similarly, the falling opposes the opposite orientation.
The third type, the symmetrical triangle, has both trend lines in an equal and opposite slope. In this variation, consolidation limits to a point in a sideways way.
In triangle patterns, an outbreak of one of the trend lines is often around the same length as the height of the triangle (that is, the distance between the upper and lower line to their extreme).
Now here is the graph that is shared by the analyst who shows the triangle that the 4-hour price of Shiba Inu has entered in recent weeks:
From the graph it seems that the triangle where Shiba Inu has recently been in is of the falling type, because the price has generally expired in this period. Based on the pattern, Martinez noted that Shib could go on its way to a swing of 17%.
But in what way could this movement appear? In general, a falling triangle is considered a continuation pattern for a bearish trend. However, it can sometimes sometimes act as a reversing pattern, with an outbreak in the upward direction instead.
Shiba Inu is currently near the middle point between the two trend lines. As such, it is only to be seen which of the two lines could visit it below. As the consolidation extends, the triangular channel only becomes tighter, so somehow a break can occur soon.
Shib -Price
At the time of writing, Shiba Inu trades around $ 0.00001436, with around 2% in the last seven days.