Shiba Inu Price Faces Potential Loss As Bearish Pattern Emerges
September 02 2023 - 8:30AM
NEWSBTC
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. Related Reading: Polygon (MATIC) Drops Below Crucial
Level – Will Sellers Exit? 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. Related Reading: BNB Price Forecast: Will
It Break Through Resistance At $225? 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
SHIBA INU (COIN:SHIBUSD)
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