With precise support levels and a trigger price, the Shiba Inu price has formed a constructive bottoming pattern.
ShibaSwap, a decentralized exchange platform (DEX), depicts a meme token progressively maturing into a viable real-world application.
The supply of SHIB on exchanges has dropped to levels seen in early June, and, more crucially, has dipped below the 30-day simple moving average (SMA).
The price of the Shiba Inu is forming an inverse head-and-shoulders pattern, providing a once-in-a-lifetime opportunity for investors to participate in a newer digital asset with a timely, high-probability entry point. The successful launch of ShibaSwap on July 6 and the reducing supply on exchanges add to the bullish SHIB narrative’s positivity.
A fresh asset falling 85 percent in nine days and instantly rebounding, recouping a major chunk of the loss in a similar space of time is exceedingly exceptional. Instead, the asset is more likely to begin a process of eliminating remaining week holders and unleashing the price compression that comes with an 85 percent drop.
Shiba Inu price has painstakingly plotted a bullish inverse head-and-shoulders pattern during the last 55 trading days, punctuated by multiple false patterns and breakouts. However, not only does the result reveal the three components of an inverse head-and-shoulders pattern, the left shoulder, head, and right shoulder, but it also indicates a significant decrease in SHIB volume as the pattern advanced, indicating that the selling pressure has been fully exhausted.
The neckline of the inverse head-and-shoulders pattern at $0.00000922 is the pattern trigger price for SHIB, and the measured move is 84 percent, with a Shiba Inu price goal of $0.00001693. It would put the digital asset at $0.000001754, slightly below the 38.2 percent Fibonacci retracement of the May fall.
Shiba Inu pricing is currently finishing the right shoulder, which is symmetrical with the left shoulder in terms of depth but has a longer duration due to the cryptocurrency market’s declining fortunes. Nonetheless, the pattern should resolve higher in the near future, with the most important resistance coming in at $0.00001204-$0.00001214.
The pressure imposed on Shiba Inu price by the 50-day simple moving average (SMA) at $0.00000797 is the only complicated aspect for the positive pattern result.
12-hour chart of SHIB/USD
The optimistic prognosis will be worthless if the Shiba Inu price cannot hold $0.00000550-$0.00000560, implying that the SHIB bottoming process is still incomplete and a more complex price structure is evolving.
It’s an uncommon occurrence when a clear and constructive pattern is defined by precise support levels and a timely, unambiguous entry price, all while exhibiting reduced selling pressure. As a result, SHIB investors must be patient and regularly monitor the broader cryptocurrency market for a change of fortune in order to capitalize on the opportunity.
Shiba Inu is one of the most recent meme digital tokens to gain traction in the cryptocurrency market, thanks in part to the highly publicized incident of Ethereum co-founder Vitalik Buterin donating more over $1 billion in SHIB to the COVID-19 Relief Fund in India.
For a long time, it was predicted that the blockchain project will become FOMO lore, and that the Shiba Inu price would eventually fall to $0. Nonetheless, ShibaSwap’s release on July 6 has given SHIB credibility by demonstrating real-world application. In reality, the swap interface for token holders was well-received, resulting in a total value locked (TVL) of $1 billion in just one day following its inception.
Although it is still early, the Etherscan gas guzzlers prove that the Ethereum blockchain-based project has staying potential. Over the last 24 hours, Shiba Inu: Migrator is ranked third, and Shiba Inu: ShibaSwap is ranked sixth.
Etherscan’s Top 6 Gas Guzzlers
Furthermore, the introduction of three new pairs, ETH/USDT, LEASH/BONE, and SHIB/BONE, will attract additional capital and strengthen the underlying story, which has the potential to propel the Shiba Inu price considerably higher in the future.
The Santiment Supply on Exchanges measure displays the total amount of SHIB in exchange wallets that are known. Increases in this indicator could indicate a surge in short-term selling pressure, while decreases could indicate a reduction in prospective selling pressure in the near future.
In the case of SHIB, the Supply on Exchanges indicator has now reached its lowest level since early June, but more crucially, supply has broken below the 30-day SMA’s uptrend line. It’s the first time the price has fallen below the moving average since the end of March, and it could signal the tiredness of weak investors, as evidenced by the daily volume profile’s gradual drop.
SHIB Exchange Supply – The price of the Santiment Shiba Inu has a lot to prove. Nonetheless, the defined pricing structure/pattern, along with a drop in supply on exchanges and the introduction of a fundamental catalyst that proves real-world use, lays the foundation for relative strength and predicts stronger SHIB outcomes.
FXStreet’s analysts assess where SHIB could go next, as it appears destined for greater highs./n
