"Shiba Inu Coin Technical Analysis: Descending Triangle Pattern "Shiba Inu Coin Technical Analysis: Descending Triangle Pattern Indicates Bearish Momentum, Traders Beware!"
Shiba Inu Price Analysis:-
Shiba Inu (SHIB) has recently faced a correction phase amid increasing bearish sentiment in the cryptocurrency market. The coin created a local top at $0.00001575, after which the daily chart revealed a downward trendline and horizontal support, indicating the formation of a descending triangle pattern.
As a result, the SHIB price has been responding actively to this bearish pattern, and traders may be interested in knowing how to trade this pattern.
Here are the key points of the SHIB price analysis:-
The SHIB price has entered a correction phase after reaching a local top at $0.00001575 amid increasing bearish sentiment in the crypto market.
The daily chart indicates the formation of a descending triangle pattern with a series of lower highs, suggesting a weakening of bullish momentum.
A potential breakdown below the $0.00001170 support level could trigger the bearish pattern and lead to a further price drop.
The intraday trading volume of SHIB currently stands at $172,906,077 ( $172.9 Million ) , indicating a 9% loss and a bearish sentiment among investors.
Traders should approach the SHIB market with caution, considering the bearish trend and the potential breakdown of the key support level.
Technical Analysis Update:-
The current correction in the Shiba Inu coin is being governed by a descending triangle pattern.
Traders have observed that the coin's price has repeatedly reverted from the pattern's resistance trendline and horizontal support. As a result, traders are closely monitoring this bearish continuation pattern and its potential target.
At present, the SHIB price is trading at $0.00001241 and remains above the neckline support of $0.00001170. With a 0.15% increase in price today, the memecoin is expected to resume its ongoing consolidation and reach the overhead trendline.
In summary, the SHIB price analysis suggests that traders are closely monitoring the descending triangle pattern and its potential target. The coin's price is currently hovering above the neckline support, and a price increase is expected to resume the consolidation phase. The ongoing correction in the SHIB price is likely to be governed by this bearish pattern, and traders should be cautious in their approach.
The area between the overhead trendline and neckline support is likely to be designated as a no-trading zone for the SHIB price.
Interested traders must wait for a breakout opportunity to get a better confirmation of the price trend.
If the price of SHIB breaks below the $0.00001170 support level with a daily candle closing, there is a higher possibility of increased selling pressure.
In such a scenario, traders may consider taking short entries at this breakdown, which could cause the price to plunge by 22% down to reach the $0.00000945 support level.
In summary, traders should be cautious in their approach to the SHIB market and closely monitor the price movement for potential breakout opportunities.
A bearish breakdown below the $0.00001170 support level could trigger increased selling pressure, and traders may consider taking short positions.
A price drop of up to 22% down to the $0.00000945 support level is a possible outcome in this scenario.
Technical indicator Overview:-
RSI:-
The daily Relative Strength Index (RSI) slope for SHIB has dropped below the midline, indicating a shift in market sentiment from bullish to bearish. This suggests that the sellers are gaining control of the market and that caution is advised when considering any potential trades.
EMA's:-
The 50-day and 200-day Exponential Moving Averages (EMAs) are moving closer to the $0.00001170 support level for SHIB, which is strengthening its support power. This convergence of EMAs is a significant technical indicator and suggests that the support level is becoming increasingly important. Traders should closely monitor the price movement around this level as a breakdown could trigger a sharp price drop.
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