thecryptobasic.com
With a bull cycle underway, Shiba Inu trends in a falling channel, leading to a death cross event. Will the meme coin manage a reversal rally to surpass $0.000030?
Shiba Inu, the second biggest meme coin by market cap, has recently been trapped in a correction pattern. Trading at a discount of 63% from its 52W high at $0.00004567, the $SHIB selling spree continues.
However, in the recent turn of events, Shiba Inu finds a breakout opportunity for a new 52W high. Will the meme coin manage to end the correction phase to unleash a high momentum breakout rally?
Triangle Holding Shiba Inu’s Fate Anticipate A Bull Cycle
In the weekly logarithmic chart, Shiba Inu develops two converging trendlines leading to a symmetrical triangle pattern. Moreover, the downfall in SHIB comes as a negative cycle to test the support trendline in a falling channel fashion.
With a long-tail lower price rejection candle, the meme coin teases the start of a new bull cycle. However, the price action traders wait for the short-term resistance trendline breakout.
As per the Fibonacci levels, SHIB sustaining above the 38.20% level increases the breakout chances. However, the long-coming support trendline could provide another bounce back opportunity.
The MACD and signal lines approach a potential bullish crossover slightly above the zero line. Thus, an underlying shift in the trend momentum is likely to end the correction spree.
Closer Look on the Daily Falling Channel
In the daily chart, the recent reversal from the overhead trendline breaks under all the crucial EMAs (20, 50, 100, 200). Furthermore, the downfall leads to a death cross in the 50D and 200D EMAs, while the 100D EMA is ready for a bearish crossover.
Currently, $SHIB trades at $0.00001687, with an intraday rise of 2.93%.
Shiba Inu’s On-chain Metrics At Crossroads
As per IntoTheBlock, a leading on-chain metrics company, almost half of the SHIB HODLers (47%) are not making any profit. However, the underlying support in the community is visible, with 78% holding tokens for more than a year.
Meanwhile, the presence of whales is crystal clear as large holders dominate 73% of concentration.
Will $SHIB Break The Bearish Glass?
Bulls anticipate a positive cycle and are ready to challenge the overhead trendline in the triangle pattern. However, the falling channel breakout in the 1D chart will be the decisive signal before any massive surge.
As per the Fibonacci levels, the bull run will likely challenge the 52W high at $0.00004567. However, the resistances at $0.000029 and $0.000035 could hamper the bull run.