Here’s Why Shiba Inu Price May Extend Correction by 15%, But There’s a Twist

The Shiba Inu price recovery at the end of March failed to break through the $0.0000328 barrier amid a broad market correction. Due to the bearish economic downturn, the coin’s value dropped to $0.0000262, marking a 20% loss for the week. This retracement phase, led by a downward trend line, suggests that SHIB price is poised for further decline.

Also read: Shiba Inu Coin: SHIB Burn Shoot 4000%, Is it a Sign of Price Recovery?

Shiba Inu Pennant Pattern Suggests an Imminent Rise Above $0.000026

Shiba Inu price trading view

The second largest meme cryptocurrency, Shiba Inu, entered a correction trend in early March as its price reversed from the resistance level at $0.0000456. Within a month, the asset’s value fell by 42.8%, falling below his 20-day EMA and his 50% retracement level.

Due to the recent decline, a first low high formation was predicted at $0.00003285 indicating that traders are selling this asset on a bullish rebound. SHIB price is currently trading at $0.000026 with a 1.1% intraday loss towards the total support of $0.0000237 and the 61.8% Fibonacci retracement level.

However, below this support, the price could fall another 14% to $0.00002. However, analyzing the 4-hour chart shows that this correction is actively resonating within two converging trend lines, indicating the formation of a bullish pennant pattern.

This chart setup represents a small pullback for buyers to regain momentum before the next leap. Furthermore, crypto analysis firm IntoTheBlock recently reported that meme coin market cap has soared to over $56 billion, hitting an all-time high.

Despite their volatile nature, meme coins are worthy of attention as they have increased their presence in the crypto market, reflecting changes in investor sentiment.

Therefore, for buyers on the sidelines, a breakout above the pennant pattern would signal a resumption of the prevailing uptrend. A potential breakout will likely see Memecoin retest the highs of $0.0000456.

Technical indicators:

  • Exponential moving average: SHIB price breakdown below the slope of the 20-day EMA indicates a shift towards a bearish trend in the short term.
  • Relative strength index: The daily RSI slope break below 50% of the midline suggests sellers are increasing their control over the asset.

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