Shiba Inu (SHIB)Consolidated between a descending trendline and a horizontal support level since May 12. As the trend lines converge, the price has less room to move and this will eventually turn into a temporary move through the breakout.
While descending triangles are more likely to be bearish breakouts, a perfect combination of signals could trigger a bullish breakout.
There May Be High Volatility In Shiba Inu Price
Shiba Inu priceAfter its May 12 slump, it quickly rebounded and set two low highs and two equal lows. These swing points combine using trendlines to form a descending triangle.
This technical formation predicts a 26% move to breakout, obtained by measuring the distance between the initial high and low swing. For an upside break, Shiba Inu price must bounce off the bottom of the triangle at $0.0000101 and produce a decisive four-hour candlestick above the hypotenuse at around $0.0000189.
For the bears, on the other hand, things seem much easier. If the sellers suppress the bullish momentum and break below the $0.000101 barrier, it will trigger a downtrend. In such a case, the theoretical target would place the Shiba Inu price at $0.0000074, which means an average of 26% collapse.
Therefore, buyers need to defend the $0.0000101 barrier at all costs to avoid a downtrend. In this case, SHIB It could rise further and retest the predicted target at $0.0000150.
With things on the line for the Shiba Inu price, traders need to be patient with SHIB trading. Things could reshape depending on how the asset reacts to the $0.0000101 support base. However, breakdown of said support would invalidate the bullish thesis and push SHIB down as low as $0.0000074.
You can follow the current price movements here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.