Shiba Inu (SHIB) risks a 60% drop after forming bearish chart pattern

NEW DELHI (CoinChapter.com) — Shiba Inu (SHIB) might see further downside movement as SHIB prices paint a bearish continuation pattern called the symmetrical triangle.

The pattern forms when an asset’s price consolidates inside two converging trendlines with similar or equal slopes.

If the price movement preceding the triangle’s formation is bearish, the asset is likely to break down, with a price target equal to the distance from the high and low of the earliest part of the pattern. SHIB prices have formed a symmetrical triangle with a bearish outlook.

As a result, SHIB’s price could fall nearly 63% from current levels to reach $0.0000909, a price level the meme crypto last visited in Oct 2021. However, if the meme token breaks out above the symmetrical triangle, SHIB prices could reach $0.0000675, gaining nearly 170%.

SHIB Price Charts

Meanwhile, SHIB prices are moving towards the upper trendline of the symmetrical triangle, jumping nearly 14% in the week beginning Mar 21. Long wicks at the bottom of the daily candles indicate bulls have been buying dips, while Mar 24’s long wick suggests strong bearish activity.

Also Read: Shiba Inu price eyes 50% rally as SHIB paints inverse head-and-shoulders.

If SHIB continues moving up, the memecoin would likely move above its 50-day exponential moving average (yellow wave) to flip immediate resistance near $0.000026. After flipping and consolidating above its immediate support, SHIB would likely target resistance near $0.0000275.

Moreover, a break above $0.0000275 would mean a breakout from the symmetrical triangle, providing SHIB bullish cues. Hence, the memecoin could move to $0.0000293 before corrections pare gains.

SHIB’s relative strength index remains neutral, clocking 52.32 on the daily charts.

Shiba Inu’s MACD Remains Bullish

Conversely, if SHIB prices fail to move above, the meme token would likely fall to immediate support at $0.0000231. A sustained sell-off could force the Shiba Inu token’s price down to support near $0.0000218, near the symmetrical triangle’s ascending trendline.

Also Read: Shiba Inu is “hanging on for dear life” after SHIB’s 75% decline from record high.

If bulls falter near $0.0000218 support, SHIB will break below the symmetrical triangle setup to test support near $0.0000203.

Trend-based momentum oscillator MACD continues to favor the bulls. Expanding bars on the MACD histogram indicate the MACD line, which is the difference of 12-day and 26-day EMA, is moving down away from its signal line, a 9-day EMA of the MACD.

As such, bullish momentum seems to be strengthening for SHIB.

At the time of writing, SHIB was trading at $0.0000249, up 4.34% on the day.