The SHIB price edged toward a decisive breakout from the triangle pattern; is $0.00001 within reach?
Published 10 seconds ago
Amid the increasing FUD in the crypto market, the SHIB price correction phase went sideways above the $0.00000725-$0.000007 support zone. The narrow consolidation resonating between two converging trendlines indicates the formation of a symmetrical triangle pattern. The coin price close to the triangle peak indicates an opportunity for a decisive breakout is near; time to go bullish?
Also Read: Memecoins Like Pepe Coin, DOGE, And Shiba Inu Outpace Stablecoins In Gas Fees
Shiba Inu Daily Chart: Key Points
- The triangle pattern breakout would trigger a directional move in the SHIB price
- A bearish crossover between the 20 and 50 days would accelerate the selling pressure.
- The intraday trading volume of the Shiba Inu coin is $120.8 Million, showing a 26% gain.
Source- Tradingview
The daily time frame chart projects the Shiba Inu coin price is following a steady downtrend under the influence of a falling wedge pattern. In June, the buyers initiated a new recovery cycle within the pattern’s channel and reached a high of $0.00001136.
However, the August correction plunged the SHIB price 28.8% down to waver above the $0.00000725 support. By press time, this popular memecoin trades at $0.000008 and is narrowing within the triangle pattern.
If the bullish momentum rises, the coin buyers may breach the upper trendline as a signal to continue the recovery trend. The post-breakout rally may surge the prices by 40% to rechallenge the resistance at $0.00001136.
What if SHIB Price Breaks Below the Support Trendline?
While the bullish outlook seems valid from price behavior, the increasing uncertainty in the crypto market may trigger a different approach. The triangle pattern is often considered a trend continuation setup indicating that the SHIB price also holds a possibility to break the lower trendline. This bearish breakdown below the lower trendline with daily candle closing will surge the selling momentum and may plunge the prices below $0.000007 support.
- Exponential Moving Average: The coin price trading below the daily EMAs(20, 50, 100, and 200) indicates the traders would face the least resistance on the downside.
- Directional Movement Index: A MACD(blue) and signal(orange) nearing a bullish crossover support the potential of a bullish upswing.
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.
