NewsletterWhy Shiba Inu Price Is At Risk of 20% Fall? Chart Pattern Offers Insight
The second largest meme cryptocurrency Shiba Inu has shown notable growth in December despite a correction sentiment in the market. Starting the month at $0.0000085, the coin price rallied 44.85% and marked a new local top at $0.00001195. The rising price has witnessed a major road from the resistance trendline of a long coming wedge pattern which threatens the coin for a possible correction.
Also Read: Major SHIB Developments Scheduled As per Shytoshi Kusama , Shiba Inu Price To Rally?
Will the SHIB Price Fall Back to $0.00001?
- The SHIB price may prolong the downtrend until the wedge pattern is intact
- The 20-day EMA continues to bolster a mid-term recovery
- The intraday trading volume of Shiba Inu is at $831 Million with a 300% gain.
The past two months have been bullish for Shiba Inu, with the coin embarking on a strong recovery journey. Starting at $0.00000661, it soared nearly 80%, achieving an eight-month high of $0.00001195.
A broader perspective reveals that this rally is part of a falling wedge pattern, suggesting a sustained downtrend over the past year. Currently trading at $0.0000107 after an intraday decline of 7.5%, the coin’s trajectory has been influenced by increasing selling pressure following retests of the upper trendline.
Historically, these retests have led to notable downturns. A potential reversal in the near term could see Shiba Inu price encountering demand at $0.00000945 and the 200-day EMA at $0.00000852, indicating a potential drop of about 20%.
A fall below these levels could mark a significant downturn for SHIB.
Wedge Pattern Hints Early Sign of Trend Reversal
Despite the short-term bearish outlook, the falling wedge pattern often precedes a trend reversal. With the broader market sentiment remaining optimistic, a support establishment at $0.0000945 could herald a bullish breakout for SHIB. Such a breakout would amplify buying pressure, potentially propelling the coin towards targets of $0.000015 and then $0.000018.
- Moving Average Convergence Divergence: A positive crossover state between the MACD(blue) and signal(orange) slope highlights the recovery trend is intact.
- Exponential Moving Average: A potential bullish crossover between the 100 and 200-day EMAs could strengthen the recovery trend.
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