SHIB Price Dip to $0.000007? Bearish Pattern Sparks Concerns

Amid the increasing uncertainty in the crypto market, the Shib price has been falling for the past four days. However, this correction backed by decreasing volume activity reflects weakness in bearish momentum and is a part of a triangle pattern. This chart pattern leads the current consolidation phase in this popular memecoin, offering the potential to trigger the directional move.

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Shiba Inu Daily Chart: Key Points

• A bearish breakdown from below trendline could tumble the SHIB market value by 12%
• A coin price below daily EMA(20, 50, 100, and 200) accentuates an overall bearish trend
• The intraday trading volume of the Shiba Inu coin is $97.18 Million, showing a 14.5% gain.

 Source- Tradingview

For nearly two weeks, the Shiba Inu coin price has been consolidating in a narrow range led by two converging trendlines. This triangular sideways trend came after a massive drop, indicating the formation of a bearish pennant pattern.

This chart pattern is known to offer a short break period to recuperate bearish momentum and prolong the correction trendline, despite an intraday loss of 0.3%, the daily chart shows a long rejection from the pattern’s lower trendline, indicating a bullish upswing within the pattern.

By the press time, the doge-themed memecoin trades at $0.00000806, with a current market cap of $4.75 Billion. With a higher possibility, the SHIB sellers may breach the lower trendline which may signal the continuation of a downward trend.

The post-breakdown fall could push the price 12% down to break $0.000007 psychological support.

Can SHIB Price Recover Back to $0.0000096?

With broader market negativity and a bearish setup, an extended correction seems reasonable for the Shiba Inu price. However, considering a contrary action, a bullish breakout from the triangle resistance could trigger a significant swing and lead the prices to be 16% higher and hit the $0.00000963 barrier.

• Exponential Moving Average: A bearish crossover between the 20- and 50-day EMA can accelerate the selling pressure in the market.
• Vortex Indicator: A negative crossover state between the VI+(blue) and VI-(orange) indicates the bearish momentum in active.