During Tuesday’s US market session, the crypto market saw a drop in volatility as Bitcoin struggled to breach the $100,000 barrier. The lack of buyer initiation has triggered selling pressure on the altcoin, especially in the memecoin sector. Thus, Shiba Inu price is breaking away from the multi-year resistance trendline, projecting the potential for a sharp correction. Can buyers fight back?
Currently, SHIB price is trading at $0.00002775 with an intraday loss of 7.25%. According to Coingecko According to the data, the market capitalization of the assets is $16.3 billion, while the 24-hour trading volume is $2.7 billion.
- A descending trendline drives the strong downward trend in Shiba inu price
- Memecoin is 12% away from challenging the multi-year resistance trendline.
- The decline in SHIB prices, coinciding with an increase in large transactions, suggests renewed interest in whales.
Shiba Inu Price Retests Pennant Pattern Amid Investor Accumulation
Over the past 2 days, Shiba Inu price plunged from $0.000033 to $0.000027, projecting a loss of 16.4%. Amid this decline, the meme cryptocurrency saw a 355% increase in large transactions and an 87% increase in daily transactions, highlighted by crypto enthusiast Mijosh.
The rise reflects growing investor interest, suggesting potential accumulation during the decline in anticipation of a price recovery.
$SHIB just rose to the top 10 ALT coins by market capitalization.@intotheblock shows Shiba Inu has a 355% increase in large transactions in the last 24 hours
Daily transactions also increased by 87% pic.twitter.com/6rbm9mu64l
– Mijosh.₿- (R•W•A)💜💜 (@Mijosh_) December 3, 2024
Currently trading at $0.000028, SHIB is retesting the recently crossed trendline of a pennant pattern. This pattern, characterized by a sharp price movement (the flagpole) followed by a symmetrical triangle or wedge, usually signals a temporary pause before a continuation of the trend.
Historical data reveals that SHIB kicked off its November rally with a similar breakout, hinting at the potential for another upward move.
Pennant Pattern Signals Potential Breakout for SHIB
If the flag pattern is true, the Shiba Inu the price could rebound by 12% and challenge the descending resistance trendline at $0.0000315. This resistance, in place since November 2021, has been one of the main drivers of the current downtrend. A decisive break above this level, confirmed by a daily close, could trigger a trend reversal, potentially propelling SHIB 62% to $0.000045.
On the contrary, if the trendline resistance remains intact, Shiba price could face a major correction below $0.00002.