Shiba Inu Hits Make-Or-Break Price: 250% Rally Or New All-Time Low?
September 12 2023 - 5:15AM
NEWSBTC
Shiba Inu (SHIB) is in a crucial make-or-break moment. Following a
market-wide altcoin slump, SHIB’s price action is being shaped by
two opposing chart patterns, both of which could have significant
implications for the price’s future. A Tale Of Two Patterns For
Shiba Inu The 1-week chart for SHIB reveals a tale of two patterns.
On one hand, there’s the bullish triple bottom, suggesting a
potential end to SHIB’s two-year downtrend. On the other, a
descending triangle, which has been in the making for over 13
months, hints at a bearish outcome. In an analysis on August 30,
NewsBTC already warned of this scenario. Related Reading: Shiba Inu
Community Sounds Warning Alarm As Scammers Siege Shibarium
Yesterday, SHIB’s price dipped to a low of $0.00000697 before
rebounding slightly to $0.00000722. This places it precariously
above the crucial support line of $0.00000715. For SHIB to steer
clear of the bearish implications of the descending triangle and to
validate the triple bottom, it’s imperative that it maintains a
weekly close above this price. The triple bottom, a bullish chart
pattern, is characterized by three roughly equivalent lows bouncing
off a support level, culminating in a breakout above resistance.
This suggests a shift in momentum from sellers to buyers. For
SHIB, the criteria for a triple bottom seem to be in place: an
existing downward trend precedes the pattern; the three lows are
approximately equal, allowing for a horizontal trend line and a
decline in volume throughout the pattern suggests weakening bearish
momentum. SHIB’s journey through this pattern began in June 2022
with its first low at $0.00000715. After a brief recovery, it hit
its second low in December 2021 at $0.00000781. The third and most
recent low was recorded in June 2023 at $0.0000060. The Shadow Of
The Descending Triangle However, the triple bottom’s bullish
narrative is challenged by the descending triangle’s bearish
undertones. If SHIB’s price falls below the $0.00000715 support, it
could validate the descending triangle, potentially pushing SHIB
towards its year-to-date low of $0.000006. A breach of this level
might plunge SHIB into uncharted waters, making a new all-time low
a grim possibility. Related Reading: Shiba Inu Tallies 77%
Accumulation By Major Investors – Good For SHIB Price? Traders
often seek additional confirmation of patterns through other
technical indicators. The Relative Strength Index (RSI) is one such
tool. SHIB’s weekly RSI currently stands at a neutral 39.8
(neutral). However, a recent dip below the 30-mark (indicating
oversold conditions) suggests that the recent price drop might have
been the last for SHIB. Should the triple bottom be validated, SHIB
could witness a significant rally. An immediate target to watch
would be the 23.6% Fibonacci retracement level at $0.00002545,
translating to a potential surge of approximately 250% from its
current price. In conclusion, SHIB’s future hangs in the balance.
The coming days and weeks will be crucial in determining whether it
embarks on a bullish rally or succumbs to bearish pressures.
Featured image from Trader 2.0, chart from TradingView.com
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