• Shiba Inu price drops below a double-bottom Point and Figure pattern, but downside pressure subsides.
  • The threshold for a bullish breakout has dropped, increasing the odds of a sustained bullish move.
  • Downside risks remain but are becoming less likely.

Shiba Inu price action shows evidence that selling pressure may abate and that a new swing low has developed. If this is confirmed, then Shiba Inu is ready to test another breakout above the bear market trendline.

Shiba Inu price sees sellers back off, giving bulls an opportunity

Shiba Inu price continues to face resistance against the bear market trendline (red diagonal trendline). Buyers have made multiple attempts to push Shiba Inu above the bear market trendline, but every attempt has been met with resistance. But a breakout higher may soon occur.

Shiba Inu has a theoretical long opportunity with a buy stop order at $0.0000500, a stop loss @ $0.0000400, and a profit target at $0.00008500. The entry is ideal because, if triggered, two simultaneous events occur—first, the entry would break above the current Volume Point Of Control. And second, the entry fulfills all requirements necessary for a Bullish Shakeout Pattern.  

The Bullish Shakeout Pattern is one of the most sought-after reversal patterns in Point and Figure analysis. Generally, this pattern is only valid at the bottom of a swing or trend and near the breakout of a bear market trendline. This pattern often begins new bull markets or resumes previous upswings.

SHIBA/USDT $0.0000025/3-box Reversal Point and Figure Chart

However, bulls will want to check how greedy they become. If Shiba Inu price moved down to $0.0000350, the long entry would be invalidated. Any move below the $0.0000425 could likely trigger a flash-crash towards the $0.0000150 value area.

 

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Solana wallet fires up the grill to burn spam NFTs out of existence

Solana wallet fires up the grill to burn spam NFTs out of existence

The Phantom wallet app has launched a new Burn Token feature, allowing users to remove spam NFTs sent by scammers. Solana-based wallet provider Phantom has launched a new burn feature allowing users to remove spam NFTs sent by scammers.

More Solana news

Shiba Inu price to provide another opportunity before a 50% upswing

Shiba Inu price to provide another opportunity before a 50% upswing

Shiba Inu price is on the verge of triggering another run-up, but it needs to allow investors who partook in the previous rally to book profits. As a result, more market participants are likely to flock around the next support level, triggering another leg-up.

More Shiba Inu news

Binance Coin Price Prediction: CZ's Crypto Takeover

Binance Coin Price Prediction: CZ's Crypto Takeover

Binance CEO Changpeng Zhao (CZ) plans to hire 2,000 more Binance employees. 14 million tokens have been locked away and burned this summer. A break above $336 could be the catalyst to induce an additional 40-50% rally.

More Binance Coin news

Dogecoin Price Prediction: A $0.02 DOGE by 2023

Dogecoin Price Prediction: A $0.02 DOGE by 2023

Dogecoin price prediction shows reasons to be concerned. Analysts have been eyeing the notorious dog coin throughout the summer as the DOGE price fell into considerably discounted price territory at $0.050. 

More Dogecoin news

Bitcoin: If bulls lose control here, BTC could revisit $21,000

Bitcoin: If bulls lose control here, BTC could revisit $21,000

Bitcoin price shows an interesting setup that could reveal its next move. On closer inspection,  its technicals support a bearish outlook for the leading crypto.  

Read full analysis

BTC

ETH

XRP