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
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.
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.
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