Price Analysis

Here’s Why Shiba Inu Price May Extend Correction by 15%, But There’s a Twist

The Shiba Inu price correction for the pennant pattern hints the buyers will regain strength for renewed recovery.

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Published 03 Apr, 2024 | 08:42:12 PM UTC

Here’s Why Shiba Inu Price May Extend Correction by 15%, But There’s a Twist

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 Price Trading view

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.

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

Published by

Sahil Mahadik

Published 03 Apr, 2024 | 08:42:12 PM

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