Shiba Inu's Price Outlook: A Bearish Trend Ahead?
A possible reversal in the downward trend of SHIB might be imminent, with potential recovery sighted near the price point of $0.0000114.
Get the lowdown on Shiba Inu's (SHIB) potential price action in the light of the descending triangle pattern, bearish market structure, and liquidation clusters.
Technical Patterns and Market Structure
- Descending Triangle: characterised by lower highs and a flat support, this pattern indicates a continuation of the bear trend when occurring within a market structure biased to the downside. Sellers remain in control as buyers lose steam.
- Bearish Market Structure: With SHIB’s market tilted towards bearishness, the descent triangle pattern intensifies the bearish expectation unless there's a breakout above the pattern’s resistance.
Liquidation Levels
- Liquidation Zones: In crypto derivatives, price tends to congregate around heavy clusters of open interest and liquidation triggers. Approaching these key liquidation levels could cause volatile movements or sudden shifts, but in a bearish structure, these spikes are usually followed by renewed selling pressure.
Price Movements in the Short Term
- Market Sentiment and Whale Impact: Despite the bearish technicals, large SHIB holders, or whales, have shown accumulation signs and moved over 576 trillion SHIB in 24 hours. Such activity might suggest confidence in a shift towards a bullish trend if sentiment changes [2].
- Burn Rate and Supply: Recent SHIB burns and reduced exchange holdings could decrease the overall supply, supporting the bullish perspective when demand picks up [2].
- Near-Term Forecasts: The short-term predictions hint at modest growth in June with price targets reaching up to $0.000018 if positive market catalysts like Shibarium upgrades or Ethereum ecosystem boosts surface. However, other technical models predict only slight near-term increases (e.g., $0.000015 to $0.000016 in the coming month) [1][4].
- Bearish Risk: In case SHIB fails to break the resistance, a breakdown beneath support could trigger a sharp sell-off, potentially targeting new lows.
Final Analysis
Given the descending triangle, bearish market structure, and possible liquidation zones, the near-term SHIB outlook is gloomy unless a sharp breakout occurs. However, large accumulation by whales and a shrinking exchange supply might prepare the ground for a bullish reversal if positive sentiment returns [1][2][4]. Keep a close eye on critical technical levels and market triggers to stay informed.
[1] CryptoSlate. (2022, May 30). SHIB eyes $0.000023 as bears fail to push meme coin below key support level. Accessed on June 14, 2022 from https://cryptoslate.com/shib-eyes-0-000023-as-bears-fail-to-push-meme-coin-below-key-support-level/
[2] The Block Crypto. (2022, June 13). Whale Watch: Shiba Inu’s massive accumulation hints at long-term price potential. Accessed on June 14, 2022 from https://www.theblockcrypto.com/news/123038/whale-watch-shiba-inus-massive-accumulation-hints-at-long-term-price-potential
[3] Coinglass. (2022). SHIBUSDT SHIB Inu 1-Day Liquidation Heatmap. Accessed on June 14, 2022 from https://coinglass.com/chart/shibusdt-liquidation/1d
[4] TradingView. (2022, June 14). SHIBUSDT SHIB Inu 1-Day Technical Analysis. Accessed on June 14, 2022 from https://www.tradingview.com/symbols/SHIBUSDT/candles/
- In the context of Shiba Inu (SHIB), technical analysis indicates a potential bearish trend ahead due to the descending triangle pattern, the bearish market structure, and possible liquidation zones.
- The descending triangle pattern, combined with the bearish market structure, intensifies the expectation of a continued bear trend in SHIB, unless there's a breakout above the pattern’s resistance.
- Despite the bearish technical outlook, the impact of large SHIB holders, or whales, and the shrinking exchange supply might contribute to a bullish reversal if positive sentiment returns.
