Will SHIB Price Rally to $0.00001? Reversal Pattern Hints End of Correction

The current correction phase in the Shiba Inu price has begun to manifest a more consistent downward movement, encapsulated by a pair of converging trend lines. These trendlines offering dynamic resistance and support indicate the formation of a bullish reversal pattern called a Falling Wedge. As the coin price approaches the apex of this pattern, we can anticipate a substantial bullish swing for this SHIB coin in the near future.

Also Read: Bad Idea AI & Tangem Collaboration Ignites SHIB Community Buzz

Will SHIB Price Start a New Recovery?

• The ongoing correction in SHIB price can be followed by the development of a wedge pattern.
• An upside breakout from the wedge pattern would signal a significant turn in market trends.
• The intraday trading volume of the Shiba Inu coin is $78.6 Million, showing a 25% gain.

Source- Tradingview

In the daily time frame chart, the coin price shows the formation of a falling wedge pattern. Typically emerging at the tail end of correction cycles, the pair of converging trendlines reveals a tapering off of bearish momentum. In the last two months, the asset has respected the boundaries of this pattern on three separate occasions from both sides, underlining its substantial impact on market sentiment. 

As of October 30th, the Shiba Inu price initiated its most recent reversal at the lower trendline, marked by a morning Star candle formation. Over the preceding three days, the asset has gained 5%, now trading at a current valuation of $0.000007. 

Given the ongoing buying pressure, the memecoin will likely test the pattern’s upper trendline for a potential breakout. A bullish breakout marked by a daily candle close above the resistance would serve as an early signal for a forthcoming recovery. 

In line with this pattern’s implications, a post-breakout rally could propel the asset to price targets of $0.00000762 and subsequently $0.00000876, equating to a prospective gain of approximately 22.6%.

SHIB vs Doge Performance

Source: Coingape| Shiba Inu Price Vs Dogecoin Price

Since mid-August, the popular Dog-themed meme coins Shiba Inu and Dogecoin have been navigating a largely downward trajectory. Yet, while the SHIB price action has been characterized by heightened volatility and huge price swings, the Dogecoin price has demonstrated a more stabilized downfall. However, with the recent development of a bullish reversal formation, the Shiba Inu coin appears to be on the cusp of experiencing a substantial upward shift.

• Moving Average Convergence Divergence: A bullish crossover between the MACD(Blue) and Signal(Orange) line reflects a potential of upcoming rising buying pressure among traders.
• Exponential Moving Averages: The 20-and-50-day EMA continues to act as a dynamic resistance against coin buyers.