The positive trend in the largest cryptocurrency, Bitcoin (BTC), has also boosted many altcoins. In this regard, investors are wondering whether Shiba Inu coin, the second largest memecoin, will rise. Here is the SHIB price analysis.
The pressure that keeps the rising trend in the beloved memecoin Shiba Inu under control is preventing a breakout rally from the descending wedge formation on the SHIB chart. However, buyers are limiting a deep correction and preventing a downward breakout in order to maintain the existence of the descending wedge formation. Expectations of a breakout with a new positive cycle support the upward expectations for Shiba Inu’s price.
Under constant selling pressure, SHIB has formed multiple lower highs. Furthermore, the 50-day Exponential Moving Average (EMA) provides a dynamic ceiling to keep the upward growth in check. Intense overall selling pressure forms a descending trendline. This descending trendline, which emerges with deepening bottom formations on the daily chart, completes the wedge formation.
Currently, SHIB is trading at $0.000006841 with a long-tailed candle formation, breaking the descending trendline. Such a sharp increase increases the possibility of a price rally.
The Relative Strength Index (RSI) on the daily timeframe indicates a strong bullish breakout on the daily chart, suggesting a high probability of an upward movement. Therefore, the momentum indicator emphasizes the possibility of an upward breakout in the descending wedge formation. The 50-day EMA acts as a barrier to the upward movement.
If buyers take control of the trend in Shiba Inu, the price of SHIB may soon break out of the descending wedge formation and enter a new upward trend. Within this upward trend, it is likely for the price to reach the resistance level around $0.00000715.
In the current positive trend, there is a possibility for the price to make a significant increase up to $0.00000851. However, if the price falls below the support trendline, it may trigger a drop to $0.0000060 in the memecoin.