On Monday during U.S trading hours, the cryptocurrency market witnessed a quick spike in supply pressure, reflected in Bitcoin’s sudden reversal from $70000. The selling momentum spread quickly to the meme cryptocurrency sectors due to their volatility prolonging the consolidation trend since last week. The Shiba Inu is down 0.3% today and a high wick rejection at major resistance hints potential downswing.

Shiba Inu Price Faces Bearish Sentiment Despite Increased Futures Interest

For the past two weeks, the Dog-themed memecoin Shiba Inu Inu has been underperforming in the broader market recovery. From the July 16th peak of $0.00002, the SHIB price plunged 16.8% to trade at $0.0000167, while the market cap plunged to $9.89 Billion.

The Shiba Inu price below the daily EMAs (20, 50, 100, and 200) indicates the path to least resistance is down. Moreover, the momentum indicator RSI at 43.7% projects a bearish to neutral market sentiment.

Shiba Inu Price| Tradingview

This downtrend can be attributed to overhead supply pressure from the resistance trendline of the falling wedge pattern. Since March 2024, the SHIB price has witnessed a steady downtrend resonating between the two converging trend lines of the pattern.

Interestingly, this setup signals the maturity of a downtrend and the potential for major traversal.

In July, the Shiba Inu futures open interest experienced a substantial rise, as indicated by data from Coinglass. The open interest (OI) value surged from $27.79 million to $38.86 million, marking an increase of approximately 39.83%. 

SHIB Futures Open Interest| Coinglass

This significant growth in open interest suggests heightened trading interest, which could be a precursor to increased price volatility or sustained price movements.

Moreover, Shiba Inu’s layer-2 blockchain Shibarium has hit a significant milestone, processing over 6 million blocks in less than a year since its launch. This achievement underscores the platform’s robust activity and growing adoption, indicating strong user engagement.

Thus, a potential breakout from the wedge resistance will signal a major change in market dynamics and provide buyers with suitable support to drive a stable rally. The post-breakout rally may extend the Shiba Inu price forecast target to $0.00003.

Key Takeaway

Under the influence of a falling wedge pattern, the Shiba Inu price has witnessed constant resistance since mid-July. Despite a major resistance so close, the coin price refused a sharp correction and continued to challenge the overhead trendline. With the broader market bullish and the increasing Open interest, the SHIB price is poised for a wedge breakout and signals the end of the correction trend.

The post Shiba Inu Price to Escape End 5 Month Correction with this Breakout appeared first on CoinGape.

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Filed under: News - @ July 29, 2024 6:15 pm