Shiba Inu, the popular cryptocurrency, has recently broken below a bullish pennant that had formed on the 6-hour timeframe, sparking concerns about its ability to recover and reach its initial target of $0.0000348.
The ongoing downtrend in the crypto market, which began on April 8, has continued for over a week now, resulting in significant declines in cryptocurrency prices. Shiba Inu, along with other altcoins, has been negatively affected, dropping below crucial support levels and currently trading at $0.000022.
Earlier this month, market analyst MBM Crypto confirmed that Shiba Inu had formed a bullish pennant on the 6-hour chart after its decline from $0.000045 in March. This pennant had held for five weeks without any breakout to either side.
During his analysis, the analyst suggested that if Shiba Inu managed to push towards $0.0000301, it would be a good opportunity for investors to enter the market, as this price would serve as a launchpad for a breach above the upper trendline. He set three modest price targets for market participants to expect after this breach, with the first target at $0.00003130, the second at $0.00003280, and the third at the March 14 high of $0.0000348.
However, as the broader market experienced increased bearish pressure, Shiba Inu faced more selling, eventually breaking below the pennant when it dropped below $0.000026 on April 12.
The analyst had anticipated a support zone between $0.00002446 and $0.00002670, which he believed would prevent further declines in the event of a downward breakout. However, SHIB breached below this support zone during the market downturn, falling to $0.000022.
The recent drop below the bull pennant and the crucial support zone has raised doubts about Shiba Inu’s ability to reach its target of $0.0000348. Despite this setback, there is still potential for SHIB to recover to the $0.000034 territory, depending on when the broader market rebounds.
Chart data indicates that SHIB is currently undervalued, with its CCI at -118.30 and RSI at 39.51 on the daily timeframe. This suggests that there is room for potential growth. Additionally, there has been a resurgence of interest in Shiba Inu, as evidenced by a significant surge in Open Interest.
Many industry commentators expect Shiba Inu to make a recovery from these lows, with some projecting price targets as high as $0.0001. Some analysts even believe that SHIB could surpass this level and reach $0.001 after the Bitcoin halving. At the time of reporting, SHIB is trading at $0.00002225.
Please note that this article is for informational purposes only and should not be considered financial advice. The views expressed in this article are the author’s personal opinions and do not reflect the opinion of The Crypto Basic. Readers are advised to conduct their own research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.