Shiba Inu Forms a Bump and Run Reversal Pattern: Eerie Bearish Reversal Ahead?
Key Takeaways
SHIB/USD chart shows a potential Bump and Run Reversal (BARR) pattern, hinting at bearishness.
Key level to watch: $0.000008255. A breakdown could signal further losses.
The hourly chart is bullish, with a rising RSI and bullish MACD; resistance at $0.000008255 is crucial.
Shiba Inu price analysis reveals a swift buying action in SHIB/USD. The price shifted quickly after an overall market rebound. The crypto market has experienced a sudden buying activity and strong support from the market. The bear’s dominance in the market appears to be waning.
However, a closer look at the chart reveals a Bump and Run Reversal (BARR) pattern. This is an indication of further bearishness in the SHIB/USD pair.
SHIB/USD Bump and Run chart on TradingView
In the case of SHIB, this pattern has formed after a sharp upward price surge followed by a lengthier consolidation period. It has broken below the BARR support line and has thus entered the breakdown stage already.
From here, the key level to watch on the BARR pattern is the initial upswing high at $0.000008255. If SHIB breaks down below this level, it could indicate that further losses are likely in store for the cryptocurrency.
In such a scenario, it would be wise for investors to cut their losses and exit any long positions. The next level of support below the breakout level is at $0.000008167, which could be a potential target for further price declines if the pattern is confirmed.
SHIB/USD Hourly Chart Analysis: Bulls Attempt to Drive the Price Higher
The SHIB/USD hourly chart shows a market-driven bullish breakout from an ascending triangle pattern. The bulls have been attempting to increase the price, with a strong support level of $0.000008411.
Looking at various technical indicators, a bullish outlook is confirmed by the rising RSI. This suggests buyers have more room to drive the SHIB/USD pair higher. The MACD also shows a bullish crossover, indicating that momentum currently favors the bulls.
Bullish candle patterns on the hourly chart further support the bullish breakout. SHIB/USD is trading just above the key resistance level of $0.000008255. If this level can be broken and sustained, we could see an upward trend in the price.
SHIB/USD hourly chart on TradingView
But with a potential bearish reversal in play, SHIB appears to be forming a BUMP and RUN Reversal on the chart, allowing investors to look for bearish positions at key levels.
The key level to watch from here is the breakout point of $0.000008255; if this level breaks, it could signal further losses for SHIB. Meanwhile, SHIB’s price has stayed above the major moving averages on the chart, indicating that there is still some strength in the uptrend.
The post Shiba Inu Forms a Bump and Run Reversal Pattern: Eerie Bearish Reversal Ahead? appeared first on CoinChapter.
Filed under: Bitcoin - @ August 23, 2023 7:17 pm