Shiba Inu’s Recent Decline of 48% Since March Indicates a Return to $0.000045

Shiba Inu has experienced a significant drop of 48% from its highest point of $0.00004567 this year. However, a market analyst has observed a pattern that suggests a potential return to $0.000045.
After its crash earlier this month, SHIB consolidated and took advantage of the market recovery to reclaim the $0.00002954 level on April 9. Unfortunately, a bearish trend emerged last week, causing Shiba Inu to plummet to new lows.
Between April 11 and 13, SHIB experienced three consecutive days of intraday losses, resulting in a massive crash of 26.71%. This drop caused Shiba Inu to fall below the crucial support level of $0.00002. Interestingly, Shiba Inu hit a six-week low of $0.00001830 before quickly bouncing back.
Despite the rebound, SHIB is still trading at its lowest level since March 4. Trade Byte, a cryptocurrency market analyst, has pointed out the significant difference between Shiba Inu’s current position and its recent yearly peak.
The analyst noted that Shiba Inu is down 52% from its peak of $0.000045 on March 5, when SHIB was trading at $0.00002175. Since the analyst’s observation, Shiba Inu has recovered some of its value and is currently trading at $0.00002348, representing a 4.82% increase in the past 24 hours.
A Falling Wedge Formation for Shiba Inu
This slight upward movement has helped SHIB recover most of its losses, but it is still down 48% from its yearly high of $0.000045. Trade Byte highlighted the formation of a falling wedge pattern during Shiba Inu’s decline from $0.000045. A falling wedge is characterized by converging downward-sloping trendlines and often indicates an upcoming bullish reversal, suggesting that the current downtrend may be coming to an end.
As SHIB approaches the apex of the wedge pattern, Trade Byte expects it to reach its peak of $0.0000456 once it breaks above the upper trendline. However, Shiba Inu may face resistance at the $0.00002486 level, which aligns with the 50-day exponential moving average (EMA).
Oversold Conditions for SHIB
Depending on how long SHIB remains within the falling wedge, breaking above the upper trendline could occur between the $0.000024 and $0.000026 range. After surpassing this crucial zone, Shiba Inu would need to surpass the Fibonacci 0.5 level at $0.00002782 and the Fib. 0.618 level at $0.000032.
SHIB’s technical analysis supports an upcoming upward push, as its Commodity Channel Index (CCI) currently stands at -140.85. A CCI of -140.85 suggests that Shiba Inu is oversold and has room for further growth. Additionally, there is significant whale accumulation in SHIB, which could contribute to its price growth.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. The opinions expressed in this article are solely those of the author and do not reflect the views 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 incurred.