Shiba Inu has just observed a buy signal that led to the memecoin seeing 71% and 118% rallies the last two times it appeared.
Shiba Inu Has Seen A TD Sequential Buy Signal Recently
As explained by analyst Ali in a new post on X, the SHIB weekly chart has observed a buy signal recently. The “TD (Tom Demark) Sequential” is a tool in technical analysis that’s used to time reversals in the price of an asset.
There are two phases of the indicator: a 9 candle setup phase and a 13 candle countdown phase. The former of these starts when the price observes a flip and continues until the ninth candle is hit. At that point, the price hits a bottom or a top (depending on the surrounding price trend).
Following the setup phase, the countdown phase begins. Once this TD Sequential phase hits the 13th candle, the price of the asset once again hits a probable top or bottom. TD sequential setups aren’t exactly a common occurrence, so when a perfect setup is complete, it can be worth watching.
As Ali has pointed out in the chart below, the Shiba Inu price has completed a TD Sequential buy setup recently.
A TD9 setup seems to have completed for the memecoin | Source: @ali_charts on X
In the graph, the analyst has also highlighted what happened the last two times, such a TD Sequential setup formed for the memecoin. It would appear that a 118% price surge followed the setup last year, while the one that occurred earlier this year led to a 71% surge.
“Given the infrequency yet precision of such signals, it’s a pivotal moment to keep a keen eye on SHIB,” says Ali. While it’s uncertain whether this buy setup would turn out to be fruitful for Shiba Inu, if the historical precedence is anything to go by, the memecoin may see a significant rise shortly.
SHIB Has Registered 11% Gains During The Past Week
Shiba Inu has also followed in the lead of Bitcoin and others recently, as it has observed a rally of its own. At present, the coin is trading around $0.00000761 and is up more than 11% during the last seven days.
The below chart shows how the memecoin has performed recently.
Looks like the value of the asset has seen a significant uplift in the last few days | Source: SHIBUSD on TradingView
While Shiba Inu’s gains are nothing to scoff at, the cryptocurrency is still behind some of the other top coins in the sector. This includes Bitcoin and Ethereum, as well as the memecoin’s eternal rival, Dogecoin.
Due to its relatively weak performance, Shiba Inu is currently only the 19th largest asset in the sector in terms of the market cap.
SHIB has a market cap of $4.5 billion at the moment | Source: CoinMarketCap
Featured image from Shutterstock.com, charts from TradingView.com
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Author: Keshav Verma