Shiba Inu (SHIB) price recovery at the end of March could not overcome the $0.0000328 barrier following a broader market correction. The downward trend led to a weekly loss of 20%, bringing the cryptocurrency’s value down to $0.0000262. This pullback, led by a falling trend line, could indicate that the SHIB price is poised for further decline.
Correction Phase in SHIB
Shiba Inu, the second-largest meme cryptocurrency, entered a correction phase at the beginning of March after the price turned from a resistance of $0.0000456. Within a month, the token lost 42.8% of its value and fell below the 20-day EMA and the 50% retracement level. The decline in the cryptocurrency suggests that investors are selling off this altcoin with a bearish trend, anticipating the first high formation to be at the $0.00003285 level.
SHIB is currently trading at $0.000026, experiencing a 1.1% loss within the day, moving towards the combined support of $0.0000237 and the 61.8% Fibonacci retracement level. However, a break below this support could lead to a further 14% drop, taking the price down to $0.00002. Nevertheless, a 4-hour chart analysis of the meme token reveals that the mentioned correction is resonating between two converging trend lines, indicating the formation of a bullish flag pattern.
Shiba Inu Analytical Reports
The indicated chart pattern represents a minor pullback for buyers to regain strength before the next leap. Moreover, a crypto analytics firm, IntoTheBlock, reported that the market value of meme tokens recently surpassed $56 billion, setting a new record.
Despite their volatile nature, meme tokens are becoming increasingly prominent in the cryptocurrency market, reflecting a noteworthy shift in investor sentiment. Therefore, a breakout above the flag formation could signal the restart of the current uptrend. A potential breakout could push the meme token to challenge the high of $0.0000456 once again.
