Chart Analysis Hint 26% Jump In Its Next Recovery Cycle

Shiba Inu price prediction 2023: The falling Shiba Inu coin price is resonating between two converging trendlines, projecting the formation of a descending wedge pattern. The core concept of the price action following the converging trendlines despite an established downtrend is the inability of sellers to bolster deeper downfall. Thus, the ongoing downfall falling to achieve a significant fall after each upside pullback indicate losing bearish momentum. Therefore, this technical setup allows buyers to wrest for trend control and ignite a fresh recovery rally.

Key Points: 

• The lower price rejection in the last few days of the daily candle indicates the intense buying pressure from below.
• Bullish divergence in the daily MACD indicator encourages an upcoming price rally.
• The intraday trading volume of the Shiba Inu coin is $813.7 Million, indicating a 17.5% loss.

Source- Tradingview

Amid the ongoing uncertainty, the Shiba Inu coin price showed numerous short-body candles and hovered above the pattern’s support trendline. This memecoin has recently rebounded from the pattern’s lower trendline and rallied to its current price of $0.0000082 mark.

Today, the SHIB price is up 1% and gradually approaching the overhead trendline. A potential bullish breakout from the resistance trendline will trigger a directional rally and provide an entry opportunity for interest traders. 

Also read: Shiba Inu Coin: SHIB Burn Jumps 13,198% In 24Hrs, Is It Shibarium Related?

If market sentiment favors, the ideal target for this wedge pattern is the highest peak of the downfall. Thus, the potential target for the Shiba Inu coin by completing this pattern is 26.5% higher to $0.0000105.

However, if the coin price reverted from the resistance trendline, the ongoing downfall will prolong for a few more trading sessions. Moreover, this possible bull run may face some in-between resistance at $0.0000087 and $0.0000096 before hitting the mentioned target.

Conversely, a bearish breakdown from the pattern resistance trendline will invalidate the bullish theory.  

Technical Indicator

Moving Average Convergence/Divergence Indicator: Despite the falling price, the MACD and signal line rising higher indicate growth in bullish momentum. If these slopes above the breach above the midline, the buyers will get an additional confirmation for price recovery.

EMAs: the downsloping(20, 50, 100, and 200) EMA assists sellers in maintaining a steady downfall.

• Resistance levels- $0.0000087 and $0.000096
• Support levels: $0.0000075 and $0.0000066