16 December 2023
Shiba Inu bulls continue to struggle to hold on to gains from the last week despite losing their hold 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 are not really getting much attention. Given this, the SHIB price has traded in a tight range for a while now, something that could either make or break the price.
Shiba Inu Trading In A Descending Parallel Pattern
Crypto analyst Ali Martinez has identified a pattern that the Shiba Inu price has been trading inside recently. Using a price chart of the altcoin, the crypto analyst shows that SHIB has continued to trade inside what is known as a descending parallel pattern.
Now, descending parallel patterns only show up in an asset when there are a lot of prominent downtrends in the price of that asset over time. Due to this, the appearance of a descending parallel pattern is often very bearish for the price. However, it is not all bad news given that descending parallel patterns can also lead to a surge in the price of an asset.
As Martinez outlines in his analysis, the current pattern being exhibited by the SHIB price can end up going one of two ways. The first of these is the bullish path which could lead to a breakout. In this case, the analyst maintains that there needs to be a decisive weekly breakout which could push the price toward $0.000014.
On the flip side of this thought is the more bearish path that could signal a drop back to October levels. This happens is the price of SHIB ends up facing a region which could lead to a cascade of downward movement. In this case, the meme coin could fall back to $0.000008 once more.
SHIB Struggles To Keep Up
Since facing rejection at $0.00001095, the 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 the asset that it could be an uphill battle to win.
There are some things that could help to return positive sentiment for Shiba Inu among investors. For one, the Shiba Inu lead developer Shytoshi Kusama has teased what they called a “game-changing announcement.” If the announcement does turn out to be as big as expected, it could propel SHIB’s price forward.
Shibarium, the Shiba Inu Layer 2 blockchain, has also seen a lot of usage recently. This flurry of activity has increased the amount of fees generated, climbing over $1.2 million. The project’s lead dev has confirmed that these generated fees will be used to burn SHIB. As the SHIB supply is reduced, the price is expected to rally.