$SHIB Decoding Shiba Inu’s descending triangle – Is an 18% price drop coming next?

SHIB’s next price point may be under $0.00002However, if bullish momentum climbs, the memecoin may exchange hands above $0.00003

An assessment of Shiba Inu’s [SHIB] price movements on the 3-day chart has revealed the formation of a descending triangle. A descending triangle is formed when an asset’s price is bound between the support and resistance lines, forming a triangular shape on the chart.

An asset’s price can either break below support and continue its decline or break out of the triangle and initiate an uptrend.

What next for SHIB?

AMBCrypto’s readings of SHIB’s Fibonacci retracement revealed that if the bears put further downward pressure on its price and it breaks below support, the memecoin’s price might decline further by 18% to trade at a low of $0.000018.

This decline appears possible as the coin continues to register a fall in demand. According to Santiment’s data, SHIB’s daily active addresses observed on a 30-day moving average revealed a 56% decline in the daily count of addresses involved in SHIB’s transactions over the past month. 

Likewise, new demand for the memecoin has plunged. In fact, according to the on-chain data provider, the number of new addresses created to trade SHIB daily has dropped by 51% over the same period.