This Pattern Signals Shiba Inu Return to $0.000045 As SHIB Slumped 48% Since March

Shiba Inu is currently 48% down from its yearly peak of $0.00004567, but a market analyst has identified the formation of a pattern signaling an imminent return to $0.000045.

Following its crash at the start of the month, SHIB consolidated in the days that followed, capitalizing on the market recovery to eventually reclaim the $0.00002954 territory on April 9. However, the end of last week introduced a bearish trend that saw Shiba Inu collapse to new lows.

SHIB recorded three consecutive days of intraday losses from April 11 to 13, resulting in a massive 26.71% crash which culminated in a drop below the pivotal $0.00002 support level. Notably, Shiba Inu collapsed to a six-week low of $0.00001830 before witnessing a quick rebound.

Despite the rebound, SHIB still trades at its lowest level since March 4. Amid the current market conditions, Trade Byte, a crypto market analyst, called attention to Shiba Inu’s low position compared to its recently attained yearly peak. 

$SHIB price dropped 52% to $0.00002175

Now eyes are on a pattern the falling wedge If it breaks a certain level it could go back up to $0.0000456#ShibaInu #Crypto pic.twitter.com/TvVjfmsQvc

— Trade Byte (@Official3Byte) April 14, 2024

The market watcher noted that Shiba Inu was down 52% from the $0.000045 peak of March 5. At the time, SHIB traded for $0.00002175. Shiba Inu has recovered some of its lost value since the analyst’s disclosure, up 4.82% over the past 24 hours to trade at $0.00002348.

Shiba Inu Forms Falling Wedge

This mild upsurge has been sufficient enough for SHIB to recover most of its losses, as it is still down 48% from the $0.000045 yearly high. However, Trade Byte emphasized that this downward slope has resulted in a pattern that could signal a massive upward surge for SHIB.

Interestingly, Shiba Inu has formed a falling wedge amid its collapse from $0.000045. For context, a falling wedge is a pattern characterized by converging trendlines sloping downward. It typically signifies an imminent bullish reversal in price, suggesting that the current downtrend may be nearing an end.

With SHIB now moving closer to the apex of the wedge pattern, Trade Byte expects it to return to the $0.0000456 peak once it breaks above the upper trendline. Notably, Shiba Inu would face a major roadblock at the $0.00002486 level, aligning with the 50-day exponential moving average (EMA).

SHIB Currently Oversold

Depending on how long it trades within the falling wedge, a breach of the upper trendline could come between the $0.000024 and $0.000026 price range. Once this pivotal zone is conquered, Shiba Inu would need to push above Fibonacci 0.5 aligning with the $0.00002782 level, and Fib. 0.618 at $0.000032.

SHIB’s technicals support an imminent push upward, as its Commodity Channel Index (CCI) has a current value of -140.85. A CCI of -140.85 indicates that Shiba Inu is oversold, suggesting that it has enough room for further growth. SHIB is also seeing massive whale accumulation, which could help bolster its price growth.