Consolidation Formation Suggests SHIB Could Go Either Way
2022.06.07 13:31
Consolidation Formation Suggests SHIB Could Go Either Way
- Shiba Inu’s (SHIB) has been lingering in a technical formation that suggests a mostly bearish outlook.
- SHIB’s current technical formation reveals that a 26% move could be possible in either direction.
- At the moment, SHIB is worth $0.00001055 after a 5.11% drop in price over the last 24 hours.
Shiba Inu’s (SHIB) has been lingering in a technical formation that suggests a mostly bearish outlook for a while now. There has been no confirmation event that confirms this, which means there is still a possibility, however small, for SHIB’s price to see an upswing.
Ever since May 13 of this year, SHIB’s price has produced four distinctive lower highs. For each of these, the meme coin also produced nearly equal lows around the $0.0000101 mark. When these swing points are connected, a clear descending triangle is visible.
SHIB/TetherUS 4h (Source: FXStreet)
SHIB’s current technical formation reveals that a 26% move could be possible in either direction, but it is important to note that the consolidative formation is suggesting a downward tendency. If there is a breakdown of the lower trend line, it will target the $0.0000074 mark, but on the other hand, if a bullish breakout were to happen it could trigger a 26% rally to the $0.0000150 point.
If SHIB can produce a four-hour candlestick close above the technical formation’s upper trend line, it is going to signal a bullish breakout which could sling SHIB to the target of $0.0000150. This move can produce a gain of around 47%.
In contrast, if SHIB were to produce a four-hour candlestick below the base of the descending triangle at around $0.0000101, it will overrule the bullish possibility and trigger a bearish one. If this is the case, SHIB could crash to $0.0000074.
At the moment, SHIB is worth $0.00001055 after a 5.11% drop in price over the last 24 hours, according to CoinMarketCap.
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