The SHIB price recently showed signs of relief as it rebounded from the support trendline of a falling wedge pattern, a technical formation often seen as a bullish reversal pattern. Over the last 5 days, the coin has surged 8.5%, buoyed by a morning star pattern, which is another bullish indicator. However, is this bullish momentum enough to carry a sustained longer-term recovery?
Also Read: Investors Top Picks For High ROI: Cardano And Everlodge, While Shiba Inu Sees Significant Growth
How Far SHIB Price Extend Correction Trend?
- Under the influence of a falling wedge pattern, the SHIB price may prolong the ongoing correction trend.
- An upside breakout from the wedge pattern would set the coin price for a 20% surge
- The intraday trading volume of the Shiba Inu coin is $78.6 Million, showing a 25% gain.
In the daily time frame chart, the Shiba Inu coin price is forming a falling wedge pattern, which traditionally signals the exhaustion of a bearish trend. Despite increased buying pressure in the crypto market around October 16—likely due to rumors about the SEC approving spot Bitcoin ETF—the SHIB price was unable to break past the upper trendline of the chart pattern.
Yesterday, the daily candle showed a significant upper wick, signaling that sellers are still successfully defending the upper trendline. At the time of writing, this memecoin is trading at $0.000007, and given the overhead supply, it’s plausible that the coin might retreat to lower levels.
A potential bearish reversal could send the price down about 6% to revisit the lower trendline at around $0.0000064. While the short-term outlook may seem bearish, the potential for a longer-term reversal based on the falling wedge pattern should not be disregarded.
Will New Found Recovery Surpass $0.000008?
It’s important to note that falling wedges often occur at the end of correction, signaling a possible trend reversal. As the SHIB price nears the apex of the wedge, the buyers could likely break the upper trendline, signaling the start of a new bullish phase. A breakout above this level, confirmed by a daily candle close, could target higher price levels at $0.0000076, followed by $0.00000845 and $0.00000876.
- Exponential Moving Average: the 50-day EMA slope walking along with the overhead resistance trendline creates an extra additional, additional barrier against buyers
- Vortex Indicator: The VI+(blue)and VI-(pink) slopes nearing each other for a bullish crossover reflect the increasing bullish momentum in the market.
Read More: Shiba Inu Price Prediction Signals a 25% Rally Ahead