Key Takeaways:
- Shiba Inu has experienced a two-month recovery, but the daily chart reveals a bearish setup known as a rising wedge pattern.
- The price of Shiba Inu might continue its recovery as long as the wedge pattern remains intact.
- However, a bearish breakdown from the pattern’s support trendline could trigger a substantial decline of 12-20% in the memecoin.
Examining the current intraday trading volume, Shiba Inu stands at $181.13 million, indicating a 40% gain. Over the last two months, the price has rebounded twice from the upper trendline and three times from the lower trendline, emphasizing the pattern’s influence on market participants. The current price stands at $0.000008648.
After a recent reversal from the overhead trendline on July 30th, leading to a 6% drop, the SHIB price has now gained about 5% in the last 24 hours. However, the likelihood is higher for the SHIB price to break the lower trendline despite today’s gains, signaling a continuation of the downtrend.
Although the Relative Strength Index (RSI) and daily price action show a rising trend, suggesting the possibility of sustained recovery for a few more days or weeks, it’s important to note that Shiba Inu’s price is currently trading below the 200-day Exponential Moving Average (EMA), indicating that the long-term trend remains bearish. SHIB Army are also looking Forward to Shibarium.
Investors and traders should closely monitor the developments in the rising wedge pattern and the critical support and resistance levels to make informed decisions in the volatile cryptocurrency market.
The Shiba Inu price analysis points to the formation of a bearish rising wedge pattern, which introduces the possibility of a significant correction. Traders should closely monitor the support and resistance levels, as well as the pattern’s development, to identify potential entry and exit points.
While a bullish breakout from the rising wedge pattern could lead to a rally above $0.00001, the current long-term bearish trend, indicated by trading below the 200-day EMA, should not be overlooked. As with any cryptocurrency investment, risk management and careful analysis are vital for making informed decisions in a volatile market like Shiba Inu.