Shiba Inu Price Analysis: Will $SHIB Price Surpass $0.00001 in August?

Shiba Inu Price Analysis: The two-month recovery in Shiba Inu price has shaped into a bearish setup pattern called a rising wedge. The pattern is characterized by two converging trendlines which provide a temporary halt in an established downtrend. Under the influence of this pattern, the SHIB price is at risk of major correction which could lead to prices below $0.000008. Should you sell on this?

Also Read: Shibarium Anticipation Climbs As $28M Worth of Shiba Inu Tokens Exit Exchanges

Shiba Inu Price Daily Chart:

• The Shiba Inu price may extend its steady recovery until the wedge pattern is intact.
• A bearish breakdown from the pattern’s support trendline could set this memecoin for a 12-20% fall
• The intraday trading volume of the Shiba Inu coin is $127.2 Million, showing a 13% gain.

Source- Tradingview

Within the last two months, the Shiba Inu price has rebounded twice from the pattern’s upper trendline and thrice from the lower trendline, indicating it has a significant influence on market participants. With each bounced back from the trendlines, the range between the wedge pattern gets narrow indicating the prices will eventually give a breakout opportunity. 

On July 30th, the coin price witnessed its latest reversal from the overhead trendline, leading 6% drop and reach the current trading price of $0.00000825. If the bearish momentum persists, the coin price could plummet another 3% to challenge the bottom support trendline.

With a higher possibility, the SHIB price is likely to break the lower trendline as a signal for downtrend continuation. The post-breakdown rally would tumble the memecoin 12% and reach the $0.000007 psychological level.

Can SHIB Price Reclaim $0.0001?

While in theory, the rising wedge pattern is a downtrend continuation pattern, on rare occasions where the bullish momentum is high, the coin price could poke the upper trendline. A bullish breakout from a bearish pattern is a strong buy signal. Therefore, the resistance trendline breakout with candle closing could accelerate the buying pressure and would likely surge the SHIB price above $0.00001

• Relative Strength Index: The price action and daily RSI slope rising with similar momentum indicate a sustained recovery which could last a few more days or weeks.
• Exponential Moving Average: The Shiba Inu price trading below the 200-day EMA indicates the long-term trend is still bearish.