Shiba Inu Price Analysis
Supply pressure in the cryptocurrency market eased over the weekend as Bitcoin price was expected to reverse sharply from $53,500. This volatility triggered a rally for most altcoins, especially meme coins. Shiba Inu, the second largest meme coin, has shown a significant upward trend after rebounding sharply from the bottom at $0.0000126. So, will this recovery last?
The official account of the museum: full love, no waste of good skirts.
Recent Market Performance
The price of Shiba Inu came under significant selling pressure during the first week of July, continuing the pullback trend seen in June. From its last swing high of $0.0000294, Shiba Inu plunged 57% to a four-month low of $0.0000125. However, during the weekend rally, SHIB price recovered 27% to close at $0.000016, with the market capitalization jumping to $9.48 billion.
technical analysis
Analysis of the daily chart shows that this reversal is due to the formation of a descending channel pattern. In this pattern, two parallel trendlines act as dynamic resistance and support, resulting in a steady downtrend. A potential bullish reversal within the channel should take the asset up 40% to challenge the overhead trendline.
Market View
Andrew Kang, founder of Mechanism Capital, expressed his views on the current market scenario in a recent tweet. Kang believes that more than 98% of alternative coins have already peaked in the current cycle, and only a few may reach new highs in the second half of 2024 or early 2025. He particularly emphasized that among the few coins, memecoins have a great chance of setting new highs, but he recommends making a wise choice from the large number of available options.
Future prospects
If the Shiba Inu price breaks out of the channel pattern, it will be a good signal for a trend reversal. A potential breakout could propel buyers to chase the target objective of $0.0000456 and subsequently a high of $0.0000885. However, until the channel pattern is complete, the SHIB price might extend its ongoing correction.
Overall, the Shiba Inu's recent rebound has been strong, but investors should proceed with caution and pay close attention to key technical levels and market dynamics to make informed investment decisions when the trend becomes established.
Therefore, a breakout of the channel pattern will be a strong sign of a trend reversal. If successful, buyers are likely to target $0.0000456, followed by a high of $0.0000885.
However, until the channel pattern is completed, SHIB price might continue its current correction.
