Bearish Pennant Pattern Puts SHIB Price at Risk of 12% Downfall
Recently, the crypto market witnessed significant outflow leading to a downward projection in the majority of major digital coins. As a result, the popular memecoin Shiba Inu has been falling for three consecutive days, recording a 6.2% loss. Amid this downfall, the sellers breached the lower support trendline of a bearish pennant pattern, indicating the coin price is likely to witness a further fall.
Also Read: Major Japanese Exchange to Support Shiba Inu on Polygon
Bearish Pennant Trigger Longer Correction Trend For SHIB Price
- Bearish pennant breakdown accelerates the selling momentum in Shib
- Crypto buyers may face strong demand pressure at $0.000007
- The intraday trading volume of the Shiba Inu coin is $110.2 Million, showing a 7.2% gain.
Source- Tradingview
Amid the last two weeks of consolidation, the Shiba Inu price resonated between two converging trendlines which acted as dynamic resistance and support. This triangular shape after a sharp fall revealed the formation of a downtrend continuation pattern called inverted pennant.
This chart setup is used to provide sellers with a short break to re-energize bearish momentum. On August 31st, the coin price gave a breakdown from the pattern’s lower trendline as a signal of resumption of downward momentum.
Currently, the SHIB price is down 0.63% offering a suitable follow-up for sellers. With sustained selling, this memecoin should be 12% down to challenge $0.000007 psychological support, followed by $0.00000545.
Will SHIB Price Fall Below $0.000007?
While the potential bearish momentum in SHIB price seems valid and sufficient to hit $0.000007 support, the daily price reflects signs of demand pressure that may limit this downfall. Amid the last few week’s sideways lactations, the coin price shows a long-lower price rejection candle, indicating the buyers becoming aggressive at lower levels.
Thus, the ongoing correction may hold at $0.000007 to rebuild the bullish momentum.
- Exponential Moving Average: The overhead EMAs(20, 50, and 100) show multiple resistance to pressurize the coin buyers
- Average Directional Index: Despite a significant breakdown, the ADX slope shows no uptick reflecting some weakness in selling momentum.
- Polymarket Founder Shayne Coplan Teases Potential POLY Token After $2B ICE Deal
- FOMC Minutes Signal Fed Open to More Rate Cuts This Year, Bitcoin Bounces
- North Dakota To Issue ‘Roughrider’ Stablecoin Following Wyoming’s Footsteps
- Ethena Labs and Jupiter Partner to Launch JupUSD Stablecoin on Solana
- BlackRock’s Bitcoin ETF Leads ETFs With $3.5B Weekly Inflows as It Eyes $100B in AUM
- Bitcoin Price Prediction as US Govt. Shutdown Extends- What’s Next for BTC?
- Solana Price Megaphone Points to a Parabolic Move as SOL Treasuries Near $3B
- XRP Price Prediction Amid ETF Approval Roadblock as Analyst Warns of $2.72 Dip
- Binance Coin Price Prediction If It Surpasses Bitcoin Marketcap— Is $3000 Possible in 2025?
- ASTER vs HYPE Price Analysis – Which Perp DEX Token Looks Poised to Dominate Q4 Performance?
- Ethereum Price Could Soar to $6,500 as BlackRock’s ETF Nears $20B Milestone
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
