Shiba Inu hype might not prevent 50% drop – fr

Shiba Inu hype might not prevent 50% drop – fr

  • The SHIB price may be framing a descending triangle pattern.
  • The one hour simple moving average (SMA) has started to offer resistance over the past 24 hours.
  • The volume has decreased significantly today, characteristic of the descending triangle patterns.

SHIB’s price consolidated today after the significant drop related to Vitalik Buterin’s decision to donate $ 1 billion from Shiba Inu to the India COVID Relief Fund. The emerging descending triangle predicts lower prices for Shiba Inu in the future.

SHIB price jitter is part of the trough process

A descending triangle is a bearish pattern and follows an established trend, albeit short in the case of Shiba Inu. However, as long as the model is robust, it can be used to anticipate price movements.

To be precise, there must be two reaction lows at the horizontal trend line, but the lows must not be exact, but within reasonable proximity to each other, as is the case with Shiba Inu. It is best if there is a gap between the stockings and a high reaction between them. There should also be two reaction highs at the descending trendline, and the highs should be successively lower, with some distance between them. If a reaction high is equal to or greater than the previous reaction high, the descending triangle is not valid.

In the case of SHIB price history, the model length will be measured in hours, but generally descending triangles can last for a few weeks or in some cases months.

While the pattern is developing, the volume should contract and increase as the pattern is solved.

The measured displacement target of the pattern is calculated by measuring the widest distance of the pattern and subtracting it from the horizontal trend line.

Within this framework, it is clear that the SHIB price has defined a descending triangle pattern with two reactions on each trendline that have alternated and a gradual decline in volume.

The SHIB price model’s measured movement target is $ 0.00000966, which is 36% down from the horizontal trendline at $ 0.00001510. More importantly, for current bullish investors, this equates to a 50% drop from the current price, $ 0.00001875.

The SHIB price could still test the descending trendline at $ 0.00002212 before falling to the downside. It is essential to ensure that the high of the reaction is lower than the high of the previous reaction at $ 0.00002298.

SHIB / USD 1 hour chart

While Shibu Inu appears to be going lower, investors need to recognize that things can change quickly with newly created cryptocurrencies. A SHIB price surge above 0.00002298 will negate the bearish outlook offered by the descending triangle pattern and increase the likelihood that Shibu Inu will rush towards the 38.2% and 50% Fibonacci retracement levels on May 10. as of May 12 at $ 0.00002401 and $ 0.00002690, respectively.

It is important for investors who wish to trade in a new cryptocurrency like Shibu Inu to take risk management very seriously as the price history is limited to generate technical indicator readings that can validate construction and them. model results.


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