Shiba Inu (SHIB), the popular meme coin, is showing signs of a potential price reversal as it nears the end of a falling wedge pattern. This technical formation, which has been in place since March, suggests that selling pressure is gradually diminishing, paving the way for a potential uptrend.
As of press time, SHIB is trading at $0.000013, reflecting a 24% decline over the past month. However, the narrowing wedge and increasing buying pressure suggest that a reversal may be imminent.
The falling wedge pattern is characterized by a series of lower highs and lower lows that converge, creating a wedge shape. As the wedge narrows, buying pressure tends to increase relative to selling pressure. When an asset’s price breaks above this wedge, it can signal a potential reversal from a downtrend to an uptrend.
Shiba Inu’s Chaikin Money Flow (CMF) indicator supports this bullish outlook. The CMF, which measures how money flows into and out of an asset, is currently above the center line at 0.03. This suggests that buying pressure is exceeding selling activity, increasing the likelihood of a breakout.
Moreover, Shiba Inu‘s Parabolic Stop and Reverse (SAR) setup indicates a bullish bias. The SAR dots are currently positioned below SHIB’s price, suggesting that the asset’s price has been rising and may continue to do so in the short term.
Also Read: BONE’s Bone Dry – Shiba Inu Community Slams Kusama For Lack Of Promotion
If SHIB successfully breaks above the falling wedge and retests the breakout line, its price could rally toward $0.000018 and beyond. However, it’s important to note that technical analysis is not foolproof, and market conditions can change rapidly.
Despite the recent price decline, Shiba Inu remains one of the most popular meme coins in the cryptocurrency market. Its large and active community continues to support the project, and developers are working on various initiatives to enhance the Shiba Inu ecosystem. These efforts include the launch of the Shibarium layer-2 blockchain, which aims to improve transaction speed and reduce fees.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
About The Author
