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Highlights
- A falling wedge pattern governs the SHIB price correction in the daily chart.
- Approximately 374K addresses that acquired 150 trillion SHIB at around $0.00001 could prevent a prolonged downfall.
- A potential breach from the overhead trendline may invalidate a bearish thesis to bolster $0.00002.
Shiba Inu price analysis shows renewed selling pressure on the weekend following the Bitcoin correction below the $60000 psychological level. The market downturn could be attributed to rising geopolitical tension in the Middle as Hezbollah fires ‘Dozens’ of rockets at Israel. As the fear of recession in the US market persists, the crypto market is at risk for prolonged correction in the coming week.
Also Read: Will Bitcoin Price Bottom at $50k Amid Growing Speculation of Fed Rate Cut?
Shiba Inu Price Analysis Hints Major Reversal Within Wedge Pattern
Shiba Inu price analysis shows an aggressive correction since mid-July amid the market correction. The bearish turnaround plummeted the SHIB price from its high of $0.00002017 to $0.0000133, registering a loss of 33.9%.
According to Coinglass data, Shiba Inu’s long position holders witnessed a forced liquidation of $4.3 million this week. The declining price showcased another bear cycle within the falling wedge pattern—a chart setup consisting of two covering trendlines that drive a series of a lower high and lower low.
The Bollinger Band indicator challenged on the downside accentuates the aggressive sellers’ attitude towards this asset, bolstering the potential for a prolonged downfall. With sustained selling, the Shiba Inu price forecast hints at a 24% potential drop to retest the wedge support trendline at $0.00001.
The $0.00001 region serves as significant support from both a pattern and on-chain perspective. Data from intotheblock analytics shows that about 374K addresses purchased nearly 150 Trillion SHIB between $0.000014 and $0.000008, representing a solid demand for SHIB coins at this discounted price.
As long as this dog-themed memecoin remains above the average purchase price at $0.00001, the likelihood of panic selling among these holders remains low.
Also Read: Riot Exec Reveals How Bitcoin Strategic Reserve Can Aid US Economy
Furthermore, the Relative Strength Index (RSI) has dipped into the oversold territory at 26%, potentially drawing buyers interested in purchasing at lower prices. A rebound from the $0.00001 level could undermine the bearish outlook and fuel a rally toward $0.000014 to test the wedge resistance.
A bullish breakout from the overhead trendline will signal an early sign of trend reversal.
Frequently Asked Questions (FAQs)
1. What is a falling wedge pattern in technical analysis?
2. What is a falling wedge pattern in technical analysis?
3. What does liquidation mean in cryptocurrency trading?
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