Shiba Inu Price Faces Big Move: Triple Bottom Or Descending Triangle?
August 30 2023 - 2:10AM
NEWSBTC
Shiba Inu (SHIB) price is once again at a crucial crossroads.
Currently, it’s down a staggering 91% from its all-time high (ATH)
of $0.00008845, recorded in October 2021. Over the past year, the
token has been on a consistent downtrend, marking lower highs and
lower lows on the monthly time frame. But all is not bleak for SHIB
investors. The recent relaunch of Shibarium, a layer 2 blockchain,
is a beacon of hope. This move is seen as Shiba Inu’s attempt to
transition from its meme coin status to a more serious player in
the crypto world, aiming to enable applications for millions across
a vast ecosystem. Shiba Inu Faces A Double-Edged Sword From a
technical chart analysis perspective, there’s another glimmer of
hope: the formation of a triple bottom pattern. This pattern, if
validated, could signal the end of SHIB’s two-year-long downtrend.
However, it’s a double-edged sword. If invalidated, this pattern
could morph into a descending triangle, potentially pushing SHIB to
new lows. Related Reading: Shiba Inu Community Celebrates New
Milestone One Day After Shibarium Goes Public A closer look at
SHIB’s weekly chart reveals the formation of this triple bottom
pattern. A triple bottom is a bullish chart pattern. It’s
characterized by three roughly equal lows bouncing off a support
level, followed by a breakout above the resistance. This visual
pattern indicates a shift in power from sellers (bears) to buyers
(bulls). Remarkably, the formation of a triple bottom is often seen
as an opportunity for traders to enter a bullish position,
especially after a prolonged bearish trend, as is the case with
SHIB. A few rules typically qualify triple bottoms. An existing
downtrend should precede the pattern. SHIB checks this box. Second,
the three lows should be roughly equal in price, allowing for a
horizontal trendline. SHIB fits this criterion as well. Third, the
volume should decrease throughout the pattern, indicating weakening
bears, while bullish volume should surge as the price breaks
through the final resistance. The chart highlights this for SHIB.
To delve deeper into the specifics: SHIB’s first bottom was
recorded when it dropped to the $0.00000715 mark in June 2022. A
subsequent recovery was short-lived, causing SHIB to fall to its
second bottom at $0.00000781 in December 2021. The third bottom was
formed at $0.0000060 in June 2023, after another recovery attempt
faced resistance and marked a lower high. Related Reading:
Shibarium Is Live And Scaling, What’s Ahead For Shiba Inu Price?
However, the danger lies in the striking similarity between the
triple bottom and the descending triangle. If the support at
$0.00000715 breaks, SHIB could validate the descending triangle and
target its previous yearly low at $0.000006. Holding this level is
crucial; otherwise, SHIB might enter uncharted territory. It’s
worth noting that traders often seek confirmation of a triple
bottom using other technical indicators. An oversold Relative
Strength Index (RSI) is one such indicator. Currently, SHIB’s
weekly RSI stands at 45 (neutral), leaning more towards the
possibility of a descending triangle pattern. But if the triple
bottom plays out, the rewards could be substantial. The first major
target for SHIB could be the 23.6% Fibonacci retracement level at
$0.00002545, translating to a potential gain of approximately 200%
from its current price. Featured image from Euro Weekly News, chart
from TradingView.com
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