Will SHIB Price Reclaim $0.00003 Mark By July End?

Shiba Inu Price Analysis: Supply pressure on the cryptocurrency market eased over the weekend as Bitcoin price made a sharp reversal from $53,500. The rally provided a temporary sense of relief for most altcoins, especially meme coins due to their volatile nature. The second-largest meme coin, Shiba Inu, is performing this way after a sharp reversal from a low of $0.0000126. Will this recovery be sustained?

Also Read: Shiba Inu Coin Price Prediction: What’s Next for the Meme Coin, Can SHIB Surpass $0.00003 Soon?

Shiba Inu Price Analysis: Channel Pattern Leads to Big Reversal in SHIB

Shiba Inu Price Analysis | Tradingview

The sell-off in the first week of July contributed significantly to Shiba Inu’s continuing consolidation trend exhibited in June, as the meme coin fell 57% from its last swing high of $0.0000294 to a four-month low of $0.0000125.

Amid the weekend relief-fueled rally, SHIB price retook 27% to trade at $0.000016, jumping the market cap to $9.48 billion. Analysis of the daily chart shows this reversal as a descending channel pattern forming.

The impact of this setup would result in a steady downtrend with two parallel trend lines acting as dynamic resistance and support. A potential bullish reversal within the channel would see the asset rise by 40% and challenge the upper trend line.

Related article: Shiba Inu Coin surges, 360 million SHIB burned in one week, is the momentum still there?

Moreover, in a recent tweet, Andrew Kang, founder of Mechanism Capital, shared his opinion on the current market scenario. Kang believes that over 98% of altcoins have already peaked in the current cycle, with only a few likely to reach new highs in late 2024 or early 2025.

He particularly highlights that meme coins have a huge chance of reaching new highs among the few coins available, but advises choosing wisely among the vast selection available.

Therefore, a breakout of Shiba Inu price from the channel pattern would be a better signal for a trend reversal. A potential breakout could encourage buyers to chase the potential target of $0.0000456, followed by a higher high of $0.0000885.

However, until the channel pattern holds, SHIB price may continue to prolong its correction.

Technical Indicators

  • BB indicator: The rising lower limit of the Bollinger Bands indicator shows that the bearish momentum is weakening.
  • RSI: The slope of the daily relative strength index has reversed from oversold territory to reach 39%, suggesting growing demand pressure for the asset during the market sell-off.

Frequently Asked Questions (FAQ)

The RSI is a momentum oscillator that measures the speed and change of price movements on a scale of 0 to 100.

A relief rally is a temporary rise in prices that occurs after a long period of decline or bear market.

Dynamic resistance and support levels are resistance and support levels that change over time and are often identified using trend lines or moving averages.

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Sahil is a professional trader with over 3 years of experience in the financial markets. He is well versed in technical analysis and closely monitors the daily price movements of major assets and indices. Drawn by his interest in financial instruments, Sahil was enthusiastic about the emerging cryptocurrency space and continues to explore opportunities driven by his passion for trading.

The presented content may contain the personal opinions of the author and are subject to market conditions. Please conduct market research before investing in cryptocurrencies. The author or publication is not responsible for any of your personal financial losses.

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