Shiba Inu eyes sharp bullish rebound despite SHIB’s 52% decline from record highs

shiba inu shib falling wedge
image from medium.com

Key Shiba Inu Takeaways:

  • Shiba Inu coin declined 52% due to safety concerns and low hype levels.
  • The FUD might be short lived, as SHIB pasted a Falling Wedge on the daily chart.

YEREVAN (CoinChapter.com) – Shiba Inu (SHIB) bulls could have something to celebrate in the upcoming month, as the coin’s daily chart flashed a bullish setup. However, it has lost upside momentum in the past month and declined by over 50% month-to-date. What’s ahead for the ‘Dogecoin killer’?

What happened?

Shiba Inu dominated Coinbase two weeks ago, accounting for 25% of all the transactions on the exchange. The meme coin registered a 1,118% rally in October, scoring a new all-time high at $0.000088. However, the wind changed in November, and the hype died down.

As a result, Shiba Inu accounted for only 6.7% of transactions on Coinbase in the past week and declined 16% during the time. In addition, the ShibaSwap TVL (total value locked) also dropped 15.4%. Moreover, concerns about various scams involving SHIB dampened the meme coin’s rally as well.

On Sunday, the official Shiba Inu coin Twitter account published a video explaining to followers how to recognize a SHIB scheme.

A fake Shiba Telegram group is being shared across social media. The scammers impersonate official accounts and create fake users. The scammers reply to general posts. They target your hashtags: #SHIB, #SHIBARMY, #LEASH, #SHIBASWAP, #BONE.

read the warning.

Additionally, the team asserted that there are no official SHIB giveaways, airdrops, bonuses, or gifts. Shiba Inu offered its followers to stay alert and refrain from providing anyone with passwords, wallet codes, email addresses, or other sensitive information.

Also read: Shiba Inu holders decline as SHIB prices fall for the third consecutive week.

Whether the scam activation inspired the sell-off or simply the decline in traders’ interest is hard to say. In any case, the SHIB chart has gone to the dogs. Or has it?

SHIB daily chart looks bullish

Despite the bearish phase, Shiba Inu flashed a Falling Wedge on the daily chart. The mentioned formation has two declining trendlines that envelop the price action and decrease its amplitude while lowering the token value. However, the Falling Wedge predicts a trend reversal. Once SHIB exhausts the patterns, it could start a new leg up.

Shiba Inu daily chart. Source: SHIBUSD on TradingView.com
Shiba Inu daily chart. Source: SHIBUSD on TradingView.com

Also read: Shiba Inu (SHIB) coin continues to struggle despite CoinGate listing.

The Falling Wedge has been instrumental in determining the SHIB price for the past month, and the digital asset retested the formation’s support in the Tuesday session. As of publication, the SHIB/USD exchange rate stood at 0.00004134 ahead of the New York session.

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