Shiba Inu price to dip 26%, allowing investors to buy SHIB at discount


  • Shiba Inu price looks to be forming a rising wedge pattern, hinting at an incoming correction.
  • A breakdown of the lower trend line at $0.00002828 will likely lead to a 13% correction to $0.00002540.
  •  In some cases, SHIB might head to $0.00002186, creating a bottom reversal pattern.

Shiba Inu price has been consolidating since its local top on October 7. This coiling up price action has pushed SHIB to produce a rising wedge formation, suggesting a correction.

Shiba Inu price looks ripe for harvesting

Shiba Inu price has been on fire, especially after an eye-popping 392% upswing between October 1 and October 7. Since hitting a local top at $0.00003528, SHIB has entered a consolidation that set up a swing low at $0.2186 on October 8.

Including this point, SHIB has created three higher lows and two higher highs. Connecting these swing points using trend lines reveals the formation of a rising wedge.

This technical formation forecasts a 26% downswing determined by adding the distance between the first swing high and swing low to the breakout point. 

While this might seem like a steep correction, the $0.00002540 support floor will be a significant barrier. There are chances for SHIB to bounce off this level and mitigate the losses, but if the selling pressure continues to increase, a revisit of $0.00002186 is likely.

Either way, this drop will allow Shiba Inu holders to accumulate or buy the dip as a retest of $0.00002186 will form a double-bottom pattern, indicating a reversal of the downtrend and a continuation of its uptrend.

SHIB/USDT 4-hour chart

SHIB/USDT 4-hour chart

While things are looking bearish for Shiba Inu price, a decisive close above $0.00003038 will be the bears’ first sign of weakness. If SHIB buyers push it to produce a higher high above $0.00003305, it wil invalidate the bearish thesis.

In such a case, investors can expect Shiba Inu price to climb to the $0.00003468 to $0.00003799 supply zone.

 

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

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Shiba Inu price prepares for 125% breakout to $0.000089

Shiba Inu (SHIB) has been downtrending within a pattern for almost the whole of November. After hitting the low of the month on Friday, with global markets in panic mode, investors could spot buy opportunities as concerns about the new Covid variant started to ease.

More Shiba Inu News

XRP price collects the liquidity it needs to surge towards $2

A brief technical and on-chain analysis on XRP price. Here, FXStreet's analysts evaluate how Ripple can rebound swiftly and move higher.

More Ripple News

Solana bulls return to the market wanting to push SOL price to new all-time highs

On Friday, Solana (SOL) price saw a 16% swing to the downside as markets got rattled by concerns over a new Covid variant. Investors, however, used the weekend to reassess the situation and quickly bought into SOL price action on Monday as bulls pushed price up to close above the monthly pivot at $185.

More Solana News

Sandbox outperforms with double-digit gains ahead of SAND's Alpha launch

Sandbox, a virtual blockchain network, is dominating the metaverse with its double-digit price gain. Sandbox is offering exclusive NFTs to community participants holding the Alpha Pass.

More Cryptocurrencies News

Cyber Monday 2021 Discounts!

Glued to your trading screen on Cyber Monday? Upgrade your skills by signing up for FXStreet’s Premium service, offered at a discount of up to 50%. Fellow traders have already taken advantage of Black Friday profits. What about you? 

Subscribe now!

BTC

ETH

XRP