As a seasoned crypto investor with a knack for deciphering market trends, I’ve seen my fair share of bull and bear runs. The latest analysis on Shiba Inu (SHIB) has me feeling a bit uneasy, given its recent breakdown from a falling wedge – a pattern that usually signals a potential bullish reversal but unfortunately not this time around.
During the recent market crash, the SHIB price nearly touched its lowest point for the year. But Bitcoin‘s rebound caused the entire crypto market to rise again. Although the markets are currently green, the latest analysis suggests that SHIB and other digital assets might experience a prolonged slump in the near future. An unusual pattern called a falling wedge has emerged in Shiba Inu, which typically indicates strong bearish pressure. Even though there’s been some recovery, the current price action of Shiba Inu shows signs of vulnerability and potential for a 16% drop from its current value.
SHIB Price Faces Rejection
As an analyst, I’ve noticed a persistent downward trend in Shiba Inu’s price, which seems to be moving within a falling channel pattern – a strong signal of bearish momentum. However, a significant event occurred on August 3 when the price broke out from this falling wedge, a situation that’s unusual because falling wedges often suggest an upcoming bullish reversal. This unexpected move could potentially indicate a shift in market sentiment towards Shiba Inu.
The price of Shiba Inu has stabilized near approximately $0.000012, but it also found additional support at $0.00001. However, notable resistance can be seen at the 50-day EMA ($0.00001425) and the 200-day EMA ($0.00001628). In other words, if the price goes up, it may encounter obstacles around those levels.
As an analyst, if Shiba Inu (SHIB) price does not manage to rebound and re-enter its falling wedge pattern, it could potentially plummet by approximately 18%, reaching a new 6-month low of $0.00001082.
In simpler terms, the Relative Strength Index (RSI) currently stands at 47.61, moving towards the zone that suggests the asset is neither too expensive (overbought) nor too cheap (oversold). Meanwhile, the Chaikin Money Flow (CMF) shows a value of 0.03, suggesting a slight increase in money flow, potentially hinting at early signs of increased buying activity.
During the latest small price increase, the volume has been gradually decreasing, suggesting a bearish discrepancy between volume and price – a phenomenon known as volume-price divergence. This indicates that the downward trend may continue unless there’s a substantial change or breakout in the market.
If Shiba Inu coin price exceeds $0.00001344, there’s a possibility it could re-enter its downward trend pattern (falling wedge), shifting the market sentiment back to bullish. A move above the 50 Exponential Moving Average (EMA) could pave the way for a bullish breakout beyond the falling wedge, potentially reaching $0.00001625 and $0.000018.
On-Chain Risk Analysis For $7.24 Billion Tokens
According to Coinalyze data, Shiba Inu’s open interest decreased by 4.54% in the past 24 hours, indicating funds are leaving the Shiba Inu market. This could mean that the brief upward momentum might be waning and may lead to a resumption of the downward trend.
As a result, approximately 26,000 Shiba Inu token holders could be at risk, as their combined value of around $190 million may soon experience unrealized losses. This is in addition to over $7.24 billion worth of tokens that have been underwater for the past nearly three weeks, based on data from IntoTheBlock.
If buying interest intensifies and the trading volume rises significantly, there’s a chance that the existing bearish view could be reversed, potentially driving the Shiba Inu (SHIB) price upward.
Read More
- SOL PREDICTION. SOL cryptocurrency
- ENA PREDICTION. ENA cryptocurrency
- USD PHP PREDICTION
- BTC PREDICTION. BTC cryptocurrency
- USD ZAR PREDICTION
- LUNC PREDICTION. LUNC cryptocurrency
- WIF PREDICTION. WIF cryptocurrency
- USD VES PREDICTION
- USD COP PREDICTION
- EUR CLP PREDICTION
2024-08-08 11:32