Shiba Inu (SHIB) Price Analysis: Descending Triangle Pattern Poses Bearish Risks
- 王林Original
- 2024-08-08 21:00:22567browse
Despite the bulls' best efforts, the Shiba Inu price failed to kickstart a rally following the recent market crash. The wider market continues to limp after
The Shiba Inu price is yet to benefit from the recent market rally, despite the bulls’ best efforts. The wider market continues to limp after its tussle with macro headwinds and other bearish cues.
SHIB price made a strong recovery on Aug. 5, ending the day in the green after a 24% drop on the same day. The memecoin tried to start a rally, but bears curbed that effort, and SHIB price has since crabbed. Yet, bearish risks against the token remain in the form of a technical setup.
SHIB Price Forms Bearish Pattern
The Shiba Inu token failed to benefit much from the recent buy-the-dip crowd entering the market. At the moment, the SHIB price is testing the support trendline of a bearish technical setup called the ‘descending triangle.‘
Market analysts often consider the descending triangle a bearish continuation signal.
The configuration features a downward-sloping upper trendline, which gradually reduces the price action’s highs, and a flat lower trendline, which is a consistent support level the price finds difficult to break.
Moreover, the pattern suggests that selling pressure is intensifying, leading to successively weaker rallies. In this setup, traders gauge the potential price target by measuring the maximum height of the triangle at its widest point.
BTC price broke out of the descending triangle pattern, though bulls pushed the token back inside the pattern. However, confirming the bearish setup might result in the SHIB USD pair dropping over 74% to reach the projected price target near $0.0000034.
A breakout below the pattern in the current market environment could be catastrophic for the SHIB USD trading pair. Hence, bulls would likely try to consolidate above the support before pushing for a rally.
Shiba Inu Price Analysis
SHIB price’s failure to launch an uptrend did not stop the token from rallying nearly 4% to reach a daily high near $0.00001335 on Aug. 8. However, bulls are struggling to push the token higher, indicating that the buying pressure might be fizzling out.
If the memecoin fails to rally or consolidate, the 1 SHIB to USD exchange rate could likely drop to the support near $0.0000122. Moreover, dropping to the immediate support would lead to the SHIB price breaking out of the bearish pattern, which could multiply the selling pressure against the token and force the SHIB price to test the support near $0.0000111.
On the other hand, a recovery from here would see the SHIB price face resistance near $0.0000143 before targeting the 0.786 FIB resistance near $0.000016.
The relative strength index for SHIB remained neutral, with a score of 31.55 on the daily charts.
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