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Multibit (MUBI) Price Breaks Out of Bearish Pattern, Is a Strong Increase Happening?

The price of Multibit (MUBI) bounced from a significant support area and broken above a short-term bearish pattern. It is expected to continue rising in the near future.

Daily Outlook

On February 25, 2024, the price of Multibit (MUBI) broke above a descending resistance line formed since the all-time high at $0.38. This indicates that the previous downtrend might have ended and MUBI’s price could be starting a new uptrend.

Indeed, the price of MUBI rose rapidly thereafter, reaching a yearly high at $0.2 on March 5 before retracting.

On March 17, the price bounced from the significant support area at $0.095 (green arrow) and formed a bullish engulfing pattern. This is a bullish pattern often seen at the end of a correction phase.

The daily RSI has rebounded above 50 and is trending upwards, signaling that the bulls may have regained control.

If the price continues to rise, it could potentially increase by 50.22% to the yearly high at $0.2.

mubi-breakout
MUBI/USDT daily chart. Source: TradingView

Breakout of the Short-Term Pattern

The 4-hour chart shows that the MUBI price has been trading within an ascending parallel channel since surging from the $0.095 support area on March 17. This is a bearish pattern that often leads to a breakdown in the majority of cases.

However, instead of a breakdown, the MUBI price has broken above the channel today. The breakout occurred with a large bullish candlestick accompanied by high trading volume, confirming the validity of the breakout.

Nullifying the bearish pattern may trap bears and lead to a strong rally afterward.

The 4-hour RSI has just entered the overbought zone and is trending upwards, supporting the possibility of further increases.

Therefore, the MUBI price may rise to the nearest horizontal resistance area at $0.15 in the coming days.

MUBI/USDT 4-hourly chart. Source: TradingView

Conclusion

The most probable outlook suggests that the MUBI price will continue to rise in the near future. The immediate target is $0.15, with further upside potential to $0.2.

Disclaimer: Please note that this article is for informational purposes only and should not be taken as investment advice. As an investor, it is important to do your own research before making any decisions. We are not responsible for any investment decisions you make based on this information. Not Financial Advice.

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