Shiba Inu’s price chart shows significant downward pressure, with a potential 16% drop despite a short-term recovery.
Points
- Shiba Inu recently broke down from a falling wedge formation.
- Significant resistance levels include the 50-day and 200-day EMAs.
- Potential for a 16% drop if current support levels fail.
Shiba Inu （SHIB） recently broke down from a rare falling wedge formation, indicating significant downward pressure. Despite a short-term recovery, SHIB’s price movements show signs of weakness, with a potential 16% drop from its current price.
Technical Analysis
The current trend for SHIB’s price is downward. The price continues to fall within a descending channel, showing strong downward momentum. On August 3, the price broke down from the falling wedge formation, typically a sign of potential bullish reversal.
Shiba Inu appears to have found support around $0.000012, and if the price falls below this level, the next stronger support level is at $0.00001. On the other hand, the 50-day （$0.00001425） and 200-day （$0.00001628） Exponential Moving Averages （EMA） are significant resistance levels.
If SHIB’s price fails to re-enter the falling wedge formation, it could drop 16% to the six-month low of $0.00001082. Conversely, if the price surpasses $0.00001344, it could re-enter the falling wedge formation and show a bullish trend. A breakout above the 50 EMA could initiate a rise towards $0.00001625 and $0.000018 levels above the falling wedge formation.
What Do Technical Indicators Say for SHIB?
- Relative Strength Index （RSI）: At 47.61, approaching the neutral zone, indicating the asset is neither overbought nor oversold.
- Chaikin Money Flow （CMF） Indicator: At 0.03, suggesting a slight positive money flow, which could be an early sign of buying interest.
During the recent minor upward movement, volume consistently decreased, showing some bearish volume-price divergences. This signals that the downtrend may continue unless there is a significant breakout.
Conclusion
Shiba Inu’s price is under significant downward pressure despite a short-term recovery. The technical indicators suggest a potential further decline unless the price re-enters the falling wedge formation and breaks significant resistance levels.
解説
- Falling Wedge Formation: A technical analysis pattern that signals a potential reversal in a downtrend.
- Exponential Moving Average （EMA）: A type of moving average that places a greater weight and significance on the most recent data points.
- Relative Strength Index （RSI）: A momentum oscillator that measures the speed and change of price movements.