As a seasoned crypto investor with battle scars from countless market corrections, I can’t help but feel a sense of deja vu as I analyze the current state of Shiba Inu. The weekend sell-off, following the Bitcoin correction below $60,000 and the escalating geopolitical tension in the Middle East, is reminiscent of the volatile rollercoaster rides we’ve all been on before.
Shiba Inu price analysis shows renewed selling pressure on the weekend following the Bitcoin correction below the $60000 psychological level. The market downturn could be attributed to rising geopolitical tension in the Middle as Hezbollah fires ‘Dozens’ of rockets at Israel. As the fear of recession in the US market persists, the crypto market is at risk for prolonged correction in the coming week.
Shiba Inu Price Analysis Hints Major Reversal Within Wedge Pattern
The analysis indicates that the price of Shiba Inu has seen a forceful decline since mid-July, coinciding with the broader market correction. This downturn caused the SHIB price to drop from its peak of $0.00002017 to $0.0000133, resulting in a 33.9% decrease.
Based on data from Coinglass, investors holding long positions in Shiba Inu were forced to sell approximately $4.3 million worth this week. The downward trend suggests another bear phase within the falling wedge pattern, which is a chart configuration featuring two converging trendlines that typically result in lower highs and lower lows.
The Bollinger Band indicator suggests that persistent sellers are driving a negative attitude towards this asset, increasing the likelihood of a prolonged price decrease. In light of continued selling, the prediction for Shiba Inu’s price indicates a potential 24% drop to retest the wedge support trendline at approximately $0.00001.
In simpler terms, the small fraction of a cent region (specifically from $0.000014 to $0.000008) plays a crucial role, not just in visual trends but also on the blockchain level, indicating strong demand for Shiba Inu coins at these lower prices. According to Intotheblock analytics, approximately 374,000 wallets have bought nearly 150 trillion Shiba Inu tokens in this price range, demonstrating a substantial interest in this discounted price point.
So, if the value of this meme-based dog coin stays higher than its typical buy price ($0.00001), the chances that its owners will rush to sell it in a panic are relatively small.
As a crypto investor, I’ve noticed that the Relative Strength Index (RSI) has dropped into the oversold zone at around 26%. This could attract potential buyers who see this as an opportunity to buy at lower prices. If we observe a bounce back from the $0.00001 level, it might challenge the bearish sentiment and trigger a surge toward the wedge resistance at $0.000014.
A bullish breakout from the overhead trendline will signal an early sign of trend reversal.
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2024-08-04 20:29