- SHIB was trading within a bullish symmetrical pattern; However, it is likely to fall
Multiple indicators suggested that SHIB can drop further, rather than achieving the anticipated breakout
As a seasoned crypto investor with battle scars from the 2017 bull run and subsequent bear market, I have learned to read between the lines when it comes to price action and technical indicators. The symmetrical pattern on SHIB‘s chart looks promising, but the fundamental issues uncovered by AMBCrypto make me skeptical about a successful breakout.
Following a significant surge that took Shiba Inu (SHIB) to its yearly peak of $0.00004567, the well-known memecoin has since rolled back much of these gains. To be precise, it has experienced a decline in value amounting to approximately 71.69%.
As I delve into my research, I’ve noticed an intriguing development in SHIB‘s price dynamics – it seems to be following a symmetrical pattern, often indicative of an upcoming rally. Yet, upon closer examination and based on findings by AMBCrypto, this time the pattern might not play out as expected due to some fundamental issues they’ve uncovered with SHIB.
Yearly low in sight for SHIB as symmetrical pattern might fail
As an analyst, I’m observing that Shib is currently moving within a symmetrical trading pattern, characterized by an upper resistance level that’s pushing sellers into the market and a lower support level enticing buyers. The breakout is often expected when the price reaches the point where these two lines converge.
Contrary to predictions suggesting a speed-up after hitting the local support at $0.00001266, the demand for purchasing wasn’t enough to overcome the upper resistance barrier.
If the resistance continues to hold strong, there’s a good chance that the price could flip and fall, with possible stopping points at approximately 0.00001078, 0.00000822, and 0.00000655. Notably, a descent to 0.00000822 would undo all the price increases that SHIB investors experienced during the rallies in February and March.
The Open Interest, as seen in Coinglass data, suggested a possible change in trend, with it decreasing from approximately $26.41 million on September 10th to $24.99 million currently.
Impending major fall predicted by metrics
Furthermore, the netflows data from Coinglass shows that Shiba Inu (SHIB) has experienced inflows, hinting that investors might be transferring their holdings to exchanges, possibly for sale. If this selling trend continues, it could trigger a period of price decline.
As a researcher studying the dynamics of cryptocurrency markets, I’ve noticed that when positive net inflows occur, it typically means more digital assets are flowing into exchanges than out. This trend could be indicative of sellers looking to offload their holdings, suggesting potential selling intent.
According to AMBCrypto’s findings, an increase in positive exchange inflows was linked to a rise in active Shiba Inu (SHIB) addresses, as suggested by CryptoQuant. Translated simply, these traders are currently offloading or selling their SHIB holdings.
As a crypto investor, I’m finding myself cautious about my Shiba Inu (SHIB) holdings due to the elevated chance they might decrease in value, given the persistent trend of exchange netflows and aggressive selling. If these patterns persist, it could potentially lead to a further drop in SHIB’s price.
Greater bearish sentiment surfaces for SHIB
In summary, the Aroon line and Money Flow Index (MFI) suggested a potential decrease in SHIB‘s price, which might lead to further price drops.
In simpler terms, the Aroon Down indicator, represented by the blue line, stood at 57.14%, which is significantly higher than the Aroon Up line shown in orange, currently at 0.00%. This suggests a dominant bearish trend in the market.
Essentially, what this implies is that there have been more instances of lower prices compared to higher ones recently. This indicates that sellers are controlling the market, which could potentially lead to further price decreases.
Moreover, the Money Flow Index was close to a neutral value at 39.33, yet it started to decline – A signal of increasing selling pressure. Furthermore, it hinted at a rising negative market outlook, even though there were no significant market shifts at this point.
A further decline in the MFI would likely result in a significant drop in SHIB’s value.
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2024-09-13 11:36