Shiba Inu bulls continue to struggle to hold on to last week’s gains despite losing their grip at the $0.00001 level. This shows a commitment to pushing the price of the meme coin even higher at a time when large-cap altcoins aren’t really getting much attention. Given this, SHIB price has been trading in a tight range for some time now, which could make or break the price.
Shiba Inu trades in a top-down parallel pattern
Crypto analyst Ali Martinez has identified a trend the Shiba Inu price has been trading in recently. Using a price chart of the altcoin, the crypto analyst shows that SHIB continued to trade in what is known as a descending parallel pattern.
Now, descending parallel patterns only appear in an asset when there are many significant downward trends in that asset’s price over time. Therefore, the appearance of a descending parallel pattern is often very bearish for the price. However, it’s not all bad news as parallel downward trends can also cause an asset’s price to surge.
As Martinez points out in his analysis, the current SHIB price trend may end up going one of two directions. The first of these is the upward trajectory which could lead to a breakout. In this case, the analyst argues that there must be a decisive weekly breakout that could push the price towards $0.000014.
On the other hand, a more downtrend could signal a return to October levels. This happens when SHIB price eventually faces a region that could lead to a cascade of downward moves. In this case, the meme coin could fall back to $0.000008.
SHIB price at $0.0000099 | Source: SHIBUSD on Tradingview.com
SHIB struggles to keep up
Since being rejected at $0.00001095, SHIB price has struggled to keep up with its gains. This makes it the level to beat if the bulls want to regain control. However, there is still a lot of resistance to this asset and it could be difficult to win.
There are a few things that could help restore positive sentiment toward Shiba Inu among investors. On the one hand, Shytoshi Kusama, lead developer of the Shiba Inu, teased what they called a “game-changing announcement.” If the announcement turns out to be as big as expected, it could push the price of SHIB higher.
Shibarium, the Shiba Inu Layer 2 blockchain, has also seen a lot of use recently. This whirlwind of activity increased the amount of fees generated, exceeding $1.2 million. The lead developer of the project has confirmed that these generated fees will be used to burn SHIB. As the supply of SHIB decreases, the price is expected to increase.
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