The formation of the wedge formation prepares the SHIB price for an upward rise.
The current correction phase in Shiba Inu price has begun to show a more consistent downward move outlined by a pair of converging trend lines. These trend lines, which offer dynamic resistance and support, indicate the formation of a bullish reversal pattern called the Falling Wedge. As the coin price approaches the top of this pattern, we can foresee a significant uptrend for this SHIB coin in the near future.
Will SHIB Price Start a New Recovery?
The ongoing correction in SHIB price may be followed by the development of a wedge formation.
An upward break in the wedge formation could signal a significant reversal in market trends.
Intraday trading volume of the Shiba Inu coin increased by 25% to $78.6 Million.
The cryptocurrency price on the daily time frame chart shows the formation of a falling wedge formation. Typically appearing at the end of correction cycles, a pair of converging trendlines reveal that bearish momentum is gradually waning. The asset has respected the limits of this pattern on three separate occasions from both sides in the last two months, underlining its significant impact on market sentiment.
Given the ongoing buying pressure, memecoin will likely test the upper trend line of the pattern for a potential breakout. An uptrend marked by a daily candle close above resistance could be an early signal of an impending recovery.
Consistent with the results of this pattern, a post-breakout rally could push the asset to price targets of $0.00000762 and then $0.00000876, equating to a possible gain of approximately 22.6%.