cryptocoin.com As we reported, meme coin project Shiba Inu (SHIB) has lost more than 50% of its market cap in three weeks since its all-time high (ATH) at the end of October. SHIB price dropped as low as $0.00004251 on November 19 after correcting almost 55% from its ATH of 0.00008854. According to Cointelegraph crypto analysts, its price retraced a small portion of its losses on Friday, but the move looks volatile due to weaker trading volumes, meaning many traders do not support the recovery trend.
“Buying the bottoms”
Some analysts state that a sharp pullback in the Shiba Inu market is inevitable after its price has skyrocketed by more than 1,100% since October 1. For example, an independent market analyst under the pseudonym John Wick describes SHIB’s ongoing price correction as a “highest signal” and suggests additional selling in the coming sessions.
Price fluctuations of 50% or more are not uncommon in the cryptocurrency market. For example, Bitcoin dropped from $65,000 to just under $30,000 earlier this year in less than thirty days. However, later, BTC recovered and set a new record at $ 69,000. According to analysts, at the center of Bitcoin’s volatile rebound was a well-distributed narrative that envisioned Bitcoin as a hedge against rising inflation all over the world. Meanwhile, for the Shiba Inu, the main bullish narrative remains “community,” as one of the crypto’s most popular supporters, David Gokhshtein puts it.
The founder of Gokhshtein Media and CEO of PAC Protocol reminds us that Shiba Inu’s bullish performance this year came despite the lack of strong community support and massive support from celebrities and billionaires. David Gokhshtein tweeted on Friday, asking his followers if any of them were “buying the bottoms”. PAC Protocol CEO thus reiterated his belief in a potential SHIB price recovery even after 50% plus price correction.
A technical overview of the price of the Shiba Inu (SHIB)
Analysts believe that the continued price correction of the Shiba Inu (SHIB) is trending lower, inside what appears to be a Bullish Flag range, raising the likelihood that the coin will continue to move higher in the future. Analysts, in detail, remind that Bullish Flags appear as a short pause in the trend after a strong price rise and make the following assessment:
The pattern looks like a downward sloping channel/rectangle represented by two parallel falling trend lines. Typically, Bullish Flags result in price breaking into levels of length equal to the height of the uptrend (called the Flagpole) before the upper trendline.
However, analysts point out that SHIB’s next attempt to break above the Flag’s upper trendline could result in a price foot rally to $0.0010000 if accompanied by an increase in trading volume.
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