Recently, the crypto market witnessed significant outflow leading to a downward projection in the majority of major digital coins. As a result, the popular memecoin Shiba Inu has been falling for three consecutive days, recording a 6.2% loss. Amid this downfall, the sellers breached the lower support trendline of a bearish pennant pattern, indicating the coin price is likely to witness a further fall.
Also Read: Major Japanese Exchange to Support Shiba Inu on Polygon
Bearish Pennant Trigger Longer Correction Trend For SHIB Price
- Bearish pennant breakdown accelerates the selling momentum in Shib
- Crypto buyers may face strong demand pressure at $0.000007
- The intraday trading volume of the Shiba Inu coin is $110.2 Million, showing a 7.2% gain.
Source- Tradingview
Amid the last two weeks of consolidation, the Shiba Inu price resonated between two converging trendlines which acted as dynamic resistance and support. This triangular shape after a sharp fall revealed the formation of a downtrend continuation pattern called inverted pennant.
This chart setup is used to provide sellers with a short break to re-energize bearish momentum. On August 31st, the coin price gave a breakdown from the pattern’s lower trendline as a signal of resumption of downward momentum.
Currently, the SHIB price is down 0.63% offering a suitable follow-up for sellers. With sustained selling, this memecoin should be 12% down to challenge $0.000007 psychological support, followed by $0.00000545.
Will SHIB Price Fall Below $0.000007?
While the potential bearish momentum in SHIB price seems valid and sufficient to hit $0.000007 support, the daily price reflects signs of demand pressure that may limit this downfall. Amid the last few week’s sideways lactations, the coin price shows a long-lower price rejection candle, indicating the buyers becoming aggressive at lower levels.
Thus, the ongoing correction may hold at $0.000007 to rebuild the bullish momentum.
- Exponential Moving Average: The overhead EMAs(20, 50, and 100) show multiple resistance to pressurize the coin buyers
- Average Directional Index: Despite a significant breakdown, the ADX slope shows no uptick reflecting some weakness in selling momentum.
