SHIB Price Analysis: Reversal Within Triangle May Drop SHIB By 12.5%
A two-week consolidation in Shiba Inu(SHIB) price has formed a descending triangle pattern. The meme coin retest to the resistance trendline may trigger another reversal to the bottom neckline. On which side will this pattern witness its breakout?
Key points:
- The SHIB price narrowing within the triangle may soon lead to a decisive breakout.
- The vortex indicator is nearing a bearish crossover.
- The intraday trading volume in Shiba Inu coin is $459.3 Million, indicating a 108% gain.
Source- Tradingview
For the first four months of 2022, the SHIB/USDT pair strictly followed a symmetrical triangle pattern of the daily time frame chart. However, on 29th, the sellers managed to breach the bottom support trendline, indicating the resumption of the past downtrend.
Furthermore, the early May sell-off in the crypto market intensified the selling pressure and plummeted the meme coin to a low of $0.000009145. Considering the breakdown level of $0.0000242, the altcoin lost 58% within a fortnight.
Anyhow, the SHIB price manages to maintain the $0.00001 support and currently hovers above it, responding to a descending triangle pattern. A recent reversal from the $0.00001 support surged the altcoin 14.3% high to retest the resistance trendline.
However, a possible bear cycle within the pattern may continue to resonate within this triangle for a few more sessions before a genuine breakout.
A fallout may dip the coin price back to $0.00009; on the flip side, a less likely breakout from the triangle may trigger a significant relief rally.
Technical indicator
The aggressive selling in the market has widened the gap between the downsloping DMAs. However, the fast-moving 20 DMA has caught up with the price, and it could assist sellers in triggering a breakdown from the pattern.
Despite a bullish crossover in the Vortex indicator, the VI+ and VI- slope failure to expand accentuates the sellers still hold the command.
- Resistance levels- $0.00001375, and $0.000017
- Support levels are $0.00001 and $0.000009
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