- SHIB has formed a bull flag pattern, suggesting a possible 48% price increase soon
- Around 1.6 trillion SHIB exited exchanges on November 20, 2024, signaling strong holder sentiment and potentially fueling a price surge
- The current bull flag pattern resembles previous patterns that led to significant price jumps for SHIB
The popular meme coin Shiba Inu (SHIB) has formed a bull flag pattern on its price chart. This technical setup suggests the cryptocurrency could see a significant price surge of 48% in the near future.
Shiba Inu Price Action Forms Bull Flag
According to crypto analyst Ali Martinez, SHIB has formed a bull flag pattern as of November 21, 2024. This pattern started forming after SHIB rose 60% between November 4-11, with prices hitting a high of $0.00002921 during that period.
The bull flag pattern now suggests a price target of $0.000037 for SHIB, which would represent a 48% increase from current levels. This pattern follows standard technical analysis rules, making the bullish case even stronger.
Large SHIB Exchange Withdrawals Align With Bullish Setup
In addition to the bull flag, exchange data also supports the bullish case for SHIB. On November 20, 2024, 16.7 trillion SHIB tokens left exchanges in just 24 hours.
A similar large withdrawal event last year preceded a 62% price surge for the meme coin. Less supply of SHIB on exchanges often leads to higher prices when buyers step in. This exchange flow data matches the bullish setup on the price chart.
source: coingecko
Ecosystem Growth Strengthens SHIB’s Market Position
Fundamentally, SHIB has grown far beyond just being a meme coin. The project now has DeFi apps, a stablecoin, and layer-2 scaling solution Shibarium. Just in the past month, SHIB has gained 32%.
As the 11th largest cryptocurrency by market cap, this ecosystem growth significantly strengthens SHIB’s market position. The broader crypto market strength also aids SHIB.
Current Pattern Mirrors Past Breakouts
When looking at historical price action, the current bull flag is similar to past patterns that ultimately led to major breakouts. The large exchange withdrawals also mimic previous occasions when long-term holder sentiment shifted.
With strong technicals, ecosystem growth, and historical precedent, the odds favor SHIB seeing a significant 48% price surge. As long as trading volumes and market conditions align, history supports this bullish breakout repeating.
