Price action suggests an explosive rally because of this pattern. I analyzed the price action of Shiba inu to find that there was an unprecedented surge in recent times and it is likely that the price will rally again very soon. It escalated from one point to another within a minute, which means that it can get even bigger if highlighted by other reasons like media coverage. Investors could have bought up stocks at a low point and are now waiting for the right time to sell again, which will cause the stock prices to rise. The price action of Shiba inu suggests that the stock price will rise again very soon.
If we study the stock chart of Shiba Inu, we find that the price action is in line with an explosive rally pattern because it has recorded two troughs and two peaks very close to each other. The first peak was recorded on June 5 and it has risen just a little bit above its previous high which is a signal that there will be no further rise in price. This can be considered the first signal of an explosive rally because it suggests that investors were willing to sell their stocks at a high point and they were waiting for a better opportunity to buy their stocks at a low point which is reflected by this pattern.
Shiba Inu price awaits explosion
The second peak is not surprising as it repeated the pattern of other stocks in this list. This means that investors were willing to buy their stocks again at a low point which directly suggests that the price trend of Shiba Inu will rise again very soon. The stock prices are at a relatively low point and there is no further decline in price but I consider the pattern as an explosive rally because it indicates that investors were waiting for a better opportunity to sell their stocks and they kept their stocks in order to make another purchase very soon.
Why has the price of Shiba Inu got a double bottom pattern?
The double bottom pattern is formed when the price of a stock rises and falls to reach a relatively low point twice. This is the most common type of pattern found in all stocks in this list. We could have also seen that the stock prices of Shiba Inu have recovered to its peak level but we have found that there is no further increase in stock prices. This means that investors were willing to sell their stocks at a high point and they were waiting for a better opportunity to buy their stocks at a low point which was an explosive rally.
What is the best price action to analyze in order to find an explosive rally pattern?
Many traders consider the highest peaks to be the best for analysis because it is very likely that there will be a big rise in stock prices and thus it is a good place for other traders to buy, which means that further rise in price can be expected. However, there are examples where high peaks were unable to produce an explosive rally after a short rally.
Therefore, we should analyze the second peak and see if we can find other signals of a rally to find the best pattern. If the second peak is a good place for investors, then this area is similar to the first peak which means that there will be no further rise in price. If we find an area that is not similar to either of the peaks, then it appears that there will be a further rise in price after another correction.
What will happen if Shiba Inu increases more than 12%?
We have considered that no one wants to own stocks at a high point which is why we thought about what would happen after another attack on stock prices at a low point. We found that the stock prices have risen to just a little bit above its previous high point and this is a signal that there will be no further rise in price.
What will happen if Shiba Inu falls more than 10%?
We have seen an increase in the price of stocks at a low point, which means that there will be no further decline in stock prices. However, we should not forget that there is still an opportunity for investors to make an explosive rally with the double bottom pattern. If the price action is not similar to either of the peaks, then there will be a further rise in price after another correction.
