As a crypto investor with some experience in the market, I’m closely monitoring the price action of Shiba Inu (SHIB) after the recent relief rally triggered by Bitcoin’s sharp reversal. Based on the analysis of the daily chart, SHIB seems to be forming a falling channel pattern, which could lead to a potential bullish reversal if the asset uplifts and challenges the overhead trendline.
Over the weekend, the cryptocurrency market experienced relief as the Bitcoin price bounced back significantly from its $53,500 low. Consequently, most altcoins, including meme coins like Shiba Inu, have seen a temporary upward trend due to their inherent volatility. After a sharp decline to $0.0000126, Shiba Inu has exhibited similar behavior. However, the question remains: will this recovery last?
Shiba Inu Price Analysis: Channel Pattern Sets SHIB For Major Reversal
The sell-off during the first week of July has played a substantial role in the downward correction of Shiba Inu, which was evident since June. Following its peak at $0.0000294, the meme coin experienced a steep decline of approximately 57%, reaching a 4-month low at $0.0000125.
As a researcher studying the cryptocurrency market over the weekend, I observed a notable relief rally that caused SHIB‘s price to drop by approximately 27% and trade at around $0.000016. Concurrently, SHIB’s market capitalization surged to an impressive $9.48 billion. Upon closer examination of the daily chart, I identified this price movement as the emergence of a falling channel pattern.
As a crypto investor, I observe that the current market setup influences my assets through two parallel trendlines acting dynamically as resistance and support. These trendlines contribute to a steady downtrend. However, if a potential bullish reversal occurs within this channel, my asset could experience a significant surge of up to 40%, challenging the overhead trendline.
As a researcher studying the cryptocurrency market, I’ve come across an intriguing perspective shared by Andrew Kang, the founder of Mechanism Capital, in a recent tweet. He posits that over 98% of altcoins have likely reached their peak for this market cycle. However, he identifies a select group of digital assets with potential to reach new highs as we move into late 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
As a crypto investor, I’d like to emphasize that meme coins present intriguing opportunities with a good potential for reaching new peaks amongst the multitude of choices out there. However, it is crucial to exercise caution and carefully select the most promising ones before making an investment decision.
The price of Shiba Inu may provide a stronger indication of a trend reversal once it breaks out from the established channel pattern. A possible breakout could prompt buyers to pursue a potential goal of $0.0000456, which might then be followed by a peak at $0.0000885.
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.
Read More
- USD ZAR PREDICTION
- LUNC PREDICTION. LUNC cryptocurrency
- BICO PREDICTION. BICO cryptocurrency
- SOL PREDICTION. SOL cryptocurrency
- BTC PREDICTION. BTC cryptocurrency
- USD PHP PREDICTION
- USD COP PREDICTION
- OPUL PREDICTION. OPUL cryptocurrency
- LED PREDICTION. LED cryptocurrency
- USD PEN PREDICTION
2024-07-07 22:36