The Shiba Inu (SHIB) market is in a very potent bull market in 2022, and one major continuation blueprint on its longer timeframe charts highlights the scope for an additional xc% upside move alee.

In detail, SHIB rose over one,250% year-to-appointment (YTD) to institute the yearly high at $0.00003528 (information from Binance) on Oct. 8. Later, the cryptocurrency cracked under the profit-taking sentiment, leading to a 41.fifty% price correction to $0.00002060.

But bulls started accumulating SHIB near the said low level. A rebound ensued and the toll rallied over 55% to $0.00003200, where it met another round of selloffs. Overall, the SHIB toll kept forming lower highs and higher lows in the next sessions, forming a Triangle construction that appeared like a Balderdash Pennant.

Analysts treat Pennants as bullish continuation patterns, i.e., their germination, coupled with declining trade volumes, tends to send prices in the direction of their previous trend — by as much as the height of the previous toll rally, also known as Flagpole.

So it appears, SHIB has been forming the aforementioned structure.

SHIB/USDT 12-hour price nautical chart featuring Bull Pennant setup. Source: TradingView

The SHIB Flagpole's pinnacle comes to be around $0.00002450. Therefore, considering the cryptocurrency would pursue a breakout to the upside from the Balderdash Pennant's apex (the level at which its upper and lower trendlines converge), its next target would be at around $0.00005200, roughly ninety% college.

Yet, Pennants are notorious for being the worst reliable technical indicators, at least according to a study conducted past Samurai Trading University'southward Cody Hind in 2022, based on his assessment of 10 years of market information and over 200,000 trading structures.

He found that Bull Pennants successfully reached their price targets in 54.87% of cases.

Macro fundamentals

The SHIB toll well-nigh doubled in Oct, in part due to Tesla CEO Elon Musk's cryptic endorsement of the Shiba Inu project and amid reports of whale ownership activity and the ascension of its decentralized exchange ShibaSwap.

Specifically, Musk posted the picture show of his Shiba Inu puppy on Oct. 4. The billionaire entrepreneur'south tweet coincided with the SHIB cost rallying by more than than 330% in the next iv days, reminiscent of how he influenced the prices of Dogecoin (DOGE) earlier this year.

The jump besides took cues from reports of whale buying activity in the Shiba Inu market. For the uninitiated, Yahoo Finance highlighted in its October. 5 report that an unknown entity purchased 6.2 trillion SHIB for circa $44 meg in belatedly September.

Related: Shiba Inu rebounds 40% despite major selling by SHIB whales

Meanwhile, Shiba Inu'south namesake, decentralized exchange ShibaSwap, detected a surge in the amount held past its liquidity pools. As of Oct. 18, the total value locked inside the ShibaSwap contracts was $411.42 million versus $253.41 million at the beginning of this month, every bit per information provided by DeFi Llama.

ShibaSwap TVL as of October eighteen, 2022. Source: Defi Llama

At its prime number, in July 2022, ShibaSwap was managing $i.76 billion worth of funds via its liquidity pool.

Ishan Arora, a hedge fund director associated with Tykhe Block Ventures, told Yahoo Finance that Shiba Inu emerged equally a product of an ongoing craze for meme cryptocurrencies, adding that most people purchase these tokens as the effect o some influencers' communication.

Arora warned investors well-nigh the risks of putting money into such one-hit wonders, but mentioned Dogecoin for its ability to render incredible profits before this twelvemonth.

"Early Doge investors concluding yr did quite well, then information technology is not every bit blackness and white as most want it to be."

Meanwhile, crypto data tracking service Santiment detected an increase in Shiba Inu whale transactions over $100,000 in the by 24 hours, noting that their occurrence is typically bullish for SHIB.

Shiba Inu whale transactions exceeding $100K. Source: Santiment

"When these transactions come up in bunches, price rises generally follow," the platform wrote in a tweet published Monday.

The views and opinions expressed here are solely those of the writer and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves adventure, you should conduct your ain inquiry when making a decision.