Bounce temporary, SHIB to print new lows

Shiba Inu price decline exceeds measured move target in a day of panic selling.
110% rebound from the low quickly stalls at critical moving average.
SHIB just fell below symmetrical triangle’s lower trend line.

Shiba Inu price fell 59% from the descending triangle pattern trigger price in less than two days, pushing SHIB well below the measured move target of $0.00000966. Current price action dictates a test of the lows in the coming days.

Shiba Inu price fails to resist wave of selling

Beginning May 12, Shiba Inu price defined a descending triangle pattern on the 1-hour chart with a measured move target of $0.00000966, representing a 36% decline. The pattern included two reaction highs and two reaction lows, and the volume was muted through most pattern development.

Shiba Inu price initially broke below the triangle’s lower trend line on May 16 before rebounding to the middle of the triangle, where it fell into a new consolidation before breaking down again on May 18. SHIB fell 59% from the trigger price before commanding some buying interest. The ensuing rally lifted the digital token 110% in a matter of hours.

Since the notable rebound, Shiba Inu has shaped a symmetrical triangle pattern just below the 50 one-hour simple moving average. At the time of writing, SHIB has declined below the triangle’s lower trend line. The measured move target of the triangle is $0.00000508, or a 52% decline from the triangle’s trigger price, taking SHIB below yesterday’s low of $0.00000607.

An extension of today’s rebound in the cryptocurrency complex or a bullish take on SHIB in the social media could void the short-term bearish outlook for Shiba Inu price and carry it back to the descending triangle’s lower trend line at $0.00001510.

SHIB/USD 1-hour chart

If Shiba Inu price does attract a bid, the first resistance will be the 50 one-hour simple moving average (SMA) at $0.00001168 and then the descending triangle’s lower trend line at $$0.00001510. A bullish thrust above the trend line would soon find more resistance at the 200 one-hour moving average at $0.00001168.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed