Published 18 hours ago
Over the past six weeks, the Shiba Inu coin price has been wavering in a sideways rally. However, the daily chart has revealed this lateral price action into a slightly declined wedge pattern. Moreover, the falling wedge pattern usually provides a strong directional rally once the price break the overhead trendline.
Key points:
- The bullish breakout from the falling wedge pattern sets the SHIB price for a 25% jump
- A bullish RSI divergence hints high possibility for prices to revisit above the trendline.
- The intraday trading volume of the Shiba Inu coin is $813.7 Million, indicating a 17.5% loss.
Source- Tradingview
Despite the highly volatile market crypto market caused by the FUD surrounding the Binance crypto exchange, the SHIB price continues to respect the levels of the wedge pattern. In theory, the price action gradually narrowing between two converging trendlines reflect the bearish momentum is getting weak.
Following the recent downfall, the SHIB price plunged back to the pattern’s support trendline, trying to replenish bullish momentum. However, the ongoing uncertainty in the market has stalled the potential growth and forced a consolidation above the trendline.
As per the technical setup, the prices should rebound from the trendline and rise 5% up to hit the combined resistance of the pattern’s trendline and $0.0000087. Moreover, under the influence of this falling wedge pattern, this memecoin should break above the resistance trendline and release the trapped bullish momentum.
This breakout would bolster buyers for a 25% growth to reach $0.00000105.
On a contrary note, a breakdown below the trendline will invalidate the bullish these and encourage a deeper price correction.
Technical indicator
Relative strength index: the daily-RSI slope rising despite a consolidation price action indicates growth in underlying bullishness. This positive divergence increases the probability of price reversal to the above trendline.
EMAs: the 20-day EMA has acted as a dynamic resistance throughout the pattern formation. Thus, the buyers should obtain an additional confirmation when the pattern breakout also reclaims this EMA.
Shiba Inu coin Price Intraday Levels
- Spot rate: $0.0000083
- Trend: Bullish
- Volatility: Medium
- Resistance levels- $0.0000087 and $0.0000096
- Support levels- $0.000008 and $0.0000075
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
