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Will SHIB Price Reclaim $0.00001? Triangle Pattern Sets 40% Rally – Crypto News

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2 years ago

August 29, 2023

Dripp

The SHIB price edged toward a decisive breakout from the triangle pattern; is $0.00001 within reach?

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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.

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