Shiba Inu Price Faces Potential Loss As Bearish Pattern Emerges

Christian Encila

Last Updated: September 2, 2023 12:30 pm

3 mins read

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Shiba Inu (SHIB) has recently found itself in a downward spiral. Over the past few days, the coin has been experiencing a steady decline, causing concern among its enthusiastic community of holders. The latest development indicates a potentially worrisome trend as sellers breach the lower support trendline of a bearish pennant pattern, hinting at further price drops on the horizon.

The bearish pennant pattern is a technical analysis chart pattern commonly used in cryptocurrency markets. It is characterized by a consolidation phase after a sharp price decline, resembling a small symmetrical triangle that slopes downwards. This pattern typically suggests that the selling pressure remains strong, and the asset may continue to experience losses.

As of the latest data from CoinGecko, SHIB is currently trading at $0.00000786, marking a 1.3% decline in the past 24 hours and a 3.2% slump over the past week. These numbers reflect the ongoing bearish sentiment in the market.

Source: TradingView

Shiba Inu Market Sentiment And Volatility

One notable aspect of SHIB’s recent price movement is the low trading volume in the market. Low volumes often indicate a lack of conviction among traders, which can result in subdued price action.

While this may suggest that the downward momentum is not particularly strong, it also leaves SHIB vulnerable to sharp price swings should a significant volume of trades occur. Traders are closely watching for signs of increased activity that could either exacerbate the decline or potentially reverse the trend.

SHIB market cap currently at $4.6 billion on the weekly chart: TradingView.com

Shibarium: Glimmer Of Hope

Amid the uncertainty surrounding SHIB’s price, there is a ray of hope for the Shiba Inu community. The successful relaunch of Shibarium, Shiba Inu’s Layer 2 scaling solution, has garnered attention. Shibarium aims to address some of the challenges facing the Shiba Inu ecosystem by reducing transaction costs and increasing transaction speed.

These improvements could make SHIB more attractive to users and potentially drive up demand for the cryptocurrency. While this development offers a counterbalance to the bearish technical indicators, its ability to reverse the trend remains uncertain.

SHIB finds itself at a challenging position as it contends with the bearish pennant pattern and declining prices. The cryptocurrency market’s low volumes reflect a cautious sentiment among traders, leaving SHIB susceptible to potential price swings.

The relaunch of Shibarium brings a glimmer of hope for SHIB’s future, as it seeks to enhance its utility and appeal. However, investors and traders are advised to exercise caution and closely monitor the market dynamics as SHIB navigates these challenging waters.

(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 Sunny Skyz

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.