Shiba Inu Price Analysis: Bearish Pattern Puts Heavy Load On SHIB Advance

Christian Encila

1 year ago

3 mins read

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The price of Shiba Inu (SHIB) has experienced a downward trend over the past several days. This corrective phase, marked by declining trading volumes, is shedding light on a potential weakening in bearish momentum.

Interestingly, this price action aligns with the emergence of a triangle pattern, a technical phenomenon that often holds significant implications for market trends.

In technical analysis, a triangle pattern refers to a chart pattern formed when the price moves within converging trendlines, creating a triangular shape. This pattern indicates a period of consolidation and indecision in the market, as buyers and sellers reach an equilibrium.

Typically, this pattern is associated with a temporary pause in the prevailing trend, and it often precedes a significant breakout or breakdown.

Shiba Inu Bearish Pennant Formation

According to a recent price analysis, this triangular sideways movement for SHIB comes on the heels of a substantial price drop, raising suspicions of a bearish pennant pattern taking shape.

A bearish pennant is characterized by a brief consolidation period following a sharp decline in price. During this time, the bearish momentum takes a breather, potentially prolonging the correction trendline.

SHIB price action in the last seven days. Source: Coingecko

A closer examination of the daily chart reveals a notable rejection from the lower trendline of the pattern. This rejection hints at the possibility of a bullish upswing within the confines of the pattern, suggesting that the SHIB price might be gearing up for a potential reversal.

As of the latest data, the current SHIB price stands at $0.00000814 according to CoinGecko, indicating a 2.1% rally over the past 24 hours. In the span of seven days, SHIB has managed to accrue gains of 3.4%. These numbers, against the backdrop of recent market turbulence, hint at a certain level of resilience within the SHIB token.

Implications Of Significant Token Movements

Ali Martinez, a respected crypto trading chart analyst, has drawn attention to a startling development that could impact SHIB’s trajectory. In a post on X, Martinez noted an extraordinary movement: approximately 2 trillion SHIB tokens were rapidly withdrawn from established crypto exchange wallets within the preceding week. This revelation has set off ripples of speculation and discourse within the digital asset community.

#ShibaInu | A staggering 2 trillion $SHIB tokens have been pulled from known #crypto exchange wallets just this past week. pic.twitter.com/MiWMNUp7jY

— Ali (@ali_charts) August 27, 2023

The swift movement of such a significant number of tokens raises questions about the potential implications for SHIB’s position within the broader crypto market. As market participants grapple with the ramifications of this withdrawal, it remains to be seen how this bold maneuver might shape SHIB’s future price action and overall market sentiment.

SHIB market cap currently at $4.7 billion. Chart: TradingView.com

With potential bullish signals emerging within this pattern and the intriguing withdrawal of tokens, the coming days could hold decisive clues about SHIB’s direction in a rapidly changing market environment.

(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

Featured image from Adobe Stock

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.