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Highlights
- A pennant pattern formation leads to the current correction trend in SHIB.
- The falling price may witness demand pressure at the combined support of $0.0000237 and 61.8% FIB.
- The 24-hour trading volume on the Shiba Inu is at $782.2 Million with a 20% loss.
The March-end recovery in Shiba Inu price failed to break past the $0.0000328 barrier amid the broader market correction. The bearish downturn plunged the coin value to $0.0000262, registering a 20% weekly loss. This retracement phase led by a downsloping trendline hints the SHIB price is poised for further downfall.
Also Read: Shiba Inu Coin: SHIB Burn Shoots 4000%, Signals Price Recovery Ahead?
Shiba Inu’s Pennant Pattern Suggests Imminent Upswing Beyond $0.000026
Shiba Inu, the second largest meme cryptocurrency entered a correction trend in early March as the price reverted from $0.0000456 resistance. Within a month, the asset lost 42.8% in value and tumbled below the 20-day EMA and 50% retracement level.
The downturn recently projected its first lower high formation at $0.00003285 indicating the traders are selling this asset at a bullish bounce. The SHIB price currently trades at $0.000026 with an intraday loss of 1.1% heading to the combined support of $0.0000237 and 61.8% Fibonacci retracement level.
However, a breakdown below this support may tumble the price another 14% to hit $0.00002. However, an analysis of the 4-hour chart shows this correction is actively resonating within two converging trendlines, indicating the formation of a bullish pennant pattern.
This chart setup represents a minor pullback for buyers to regain their strength before the next leap. Moreover, a crypto analytics firm IntoTheBlock, recently reported that the market cap for meme coins has soared to over $56 billion, marking a new high.
Despite their volatile nature, meme coins are becoming more prominent in the crypto market, reflecting a shift in investor sentiment that’s worth monitoring.
Thus, for sidelined buyers, a breakout above the pennant pattern will signal the resumption of the prevailing uptrend. A potential breakout will push the memecoin to rechallenge the $0.0000456 high.
Technical Indicator:
- Exponential Moving Average: The SHIB price breakdown below the 20-day EMA slope indicates the near-term trend in shifting to bearish.
- Relative Strength Index: The daily RSI slope break below 50% midline hints the sellers are strengthening their grip over the asset.
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