Shiba Inu Price Analysis: Will SHIB Price Reclaim $0.00003 Mark By July End?

Shiba Inu Price Analysis: The supply pressure on the cryptocurrency market eased over the weekend as the Bitcoin price projected a sharp reversal from $53500. Thus upswing has temporarily triggered a relief rally for the majority of altcoins and especially for meme coins due to their volatile nature. The second-largest meme coin Shiba Inu shows such behaviors after a sharp reversal from the $0.0000126 floor. Will this recovery be sustained?

Also Read: Shiba Inu Coin Price Forecast: What Next For Meme Coin, Can SHIB Break $0.00003 Soon?

Shiba Inu Price Analysis: Channel Pattern Sets SHIB For Major Reversal 

July’s First-week sell-off has contributed significantly to the ongoing correction trend of Shiba Inu indicated in June. From the last swing high of $0.0000294, the meme coin tumbled 57% to a 4-month low of $0.0000125.

Amid the weekend relief rally, the SHIB price reverted 27% to trade at $0.000016, while the market cap jumped to $9.48 Billion. An analysis of the daily chart shows this reversal as the formation of a falling channel pattern.

Under the influence of this setup, two parallel trendlines act as dynamic resistance and support to lead to a steady downtrend. A potential bullish reversal within the channel should uplift the asset by 40% to challenge the overhead trendline.

Also Read: Shiba Inu Coin Surges As 360M SHIB Burnt Over The Week, More Steam Left?

Furthermore, in a recent tweet Andrew Kang, the founder of Mechanism Capital, expresses his opinion on the current market scenario. Kang believes that over 98% of altcoins have already peaked for the current cycle, with only a select few potentially reaching new highs in the latter part of 2024 or early 2025. 

Memes probably constitute a majority of the coins that have a chance of making new highs

Hundred of thounsands of memecoins though so you need to be quite selective

— Andrew Kang (@Rewkang) July 7, 2024

He particularly highlights meme coins as having a significant chance among those few to achieve new highs but advises to choose wisely from the massive available options.

Thus, the Shiba Inu price breakout from the channel pattern will be a better signal of trend reversal. A potential breakout could bolster buyers to chase a potential target of $0.0000456, followed by a $0.0000885 high.

However, until the channel pattern is intact, the SHIB price could prolong its ongoing correction.

Technical Indicator

• BB Indicator: An upswing in the lower boundary of the Bollinger Band indicator highlights weakened bearish momentum
• RSI: The daily Relative Strength Index slope reverted from the oversold region to hit 39% hinting at the increasing demand pressure for this asset at the market dip.