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.

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Sahil Mahadik

Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading

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