Shiba

Kusama

Resistance

Shiba Inu

Reversal

<img width="1200" height="681" src="https://coingape.com/wp-content/uploads/2023/12/5Zggrc8K-e1702819488432.png" class="attachment-full size-full wp-post-image" alt="SHIB price" decoding="async" style="float:right; margin:0 0 10px 10px;">
In December, the second-largest memecoin Shiba Inu, showed resilience against the broader market’s uncertainty by embarking on a <a href="https://coingape.com/shiba-inu-shib-price-faces-rejection-at-0-000010995-whats-next/">steady recovery</a>. The month began with the coin valued at $0.0000085, and it experienced a notable surge of 44.85%, reaching a recent peak of $0.0000115. However, this uptrend encountered a significant obstacle at the resistance trendline of a long-established falling wedge pattern. This development brought in substantial supply pressure, potentially steering Shiba Inu towards a new correction phase. 
Also Read: <a href="https://coingape.com/shytoshi-kusama-drops-hint-at-major-shib-developments-shiba-inu-price-to-rally/">Major SHIB Developments Scheduled As per Shytoshi Kusama , Shiba Inu Price To Rally?</a> 
<h2 id="b-will-the-shib-price-fall-back-to-0-00001-b">Will the SHIB Price Fall Back to $0.00001?</h2> 
<ul> 
 <li style="font-weight: 400;" aria-level="1">The SHIB price may prolong the downtrend until the wedge pattern is intact</li> 
 <li style="font-weight: 400;" aria-level="1">The 20-day EMA continues to bolster a mid-term recovery</li> 
 <li style="font-weight: 400;" aria-level="1">The intraday trading volume of Shiba Inu is at $831 Million with a 300% gain.</li> 
</ul> 
<figure style="width: 100%" class="wp-caption alignnone">
 <img decoding="async" src="https://s3.tradingview.com/snapshots/5/5Zggrc8K.png" alt="Shiba Inu Price" width="1946" height="1105">
 <figcaption class="wp-caption-text">
 Shiba Inu Price| TradingView Chart
 </figcaption>
</figure> 
The past two months have been bullish for Shiba Inu, with the coin embarking on a strong recovery journey. Starting at $0.00000661, it soared nearly 80%, achieving an eight-month high of $0.00001195.&nbsp; 
<blockquote>
 A broader perspective reveals that this rally is part of a falling wedge pattern, suggesting a sustained downtrend over the past year. Currently trading at $0.0000107 after an intraday decline of 7.5%, the coin’s trajectory has been influenced by increasing selling pressure following retests of the upper trendline.&nbsp;
</blockquote> 
Historically, these retests have led to notable downturns. A potential reversal in the near term could see <a href="https://coingape.com/price/shiba-inu/">Shiba Inu price</a> encountering demand at $0.00000945 and the 200-day EMA at $0.00000852, indicating a potential drop of about 20%.&nbsp; 
A fall below these levels could mark a significant downturn for SHIB. 
<h2 id="b-wedge-pattern-hints-early-sign-of-trend-reversal-b">Wedge Pattern Hints Early Sign of Trend Reversal</h2> 
Despite the short-term bearish outlook, the falling wedge pattern often precedes a trend reversal. With the broader market sentiment remaining optimistic, a support establishment at $0.0000945 could herald a bullish breakout for SHIB. Such a breakout would amplify buying pressure, potentially propelling the coin towards targets of $0.000015 and then $0.000018. 
<ul> 
 <li style="font-weight: 400;" aria-level="1">Moving Average Convergence Divergence: A positive crossover state between the <a href="https://coingape.com/glossary/macd-moving-average-convergence-divergnece/">MACD</a>(blue) and signal(orange) slope highlights the recovery trend is intact.</li> 
 <li style="font-weight: 400;" aria-level="1">Exponential Moving Average: A potential bullish crossover between the 100 and 200-day <a href="https://coingape.com/education/exponential-moving-average-how-to-leverage-it-in-crypto-market/">EMAs</a> could strengthen the recovery trend.</li> 
</ul> 
The post <a href="https://coingape.com/markets/shiba-inu-price-at-16-month-resistance-faces-20-risk/">Shiba Inu Price at 16-Month Resistance Faces 20% Downside Risk, But There’s a Catch</a> appeared first on <a href="https://coingape.com">CoinGape</a>.

Shiba Inu Price at 16-Month Resistance Faces 20% Downside Risk, But There’s a Catch

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