Amid this week’s consolidation, the Shiba Inu price is hovering above the $0.0000163 level, trying to stabilize above multi-month support. The SHIB price in the daily chart producing alternative green and red candles shows no clear initiation from buyers or sellers. Will the pattern hold true and trigger a fresh recovery or Bitcoin’s potential break below the $60000 mark signal a fresh correction?
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Shiba Inu Price: Bull-Flag Hints Temporary Pullback
Shiba Inu, the second largest meme coin, entered the current correction trend in late May as the price reverted from the $0.0000294 high. Amid the market sell-off, the coin price plunged over 41% to reach the current trading price of $0.0000172, while the market cap dropped to $10.12 Billion.
However, a look at the daily chart shows this downfall as part of the bullish continuation pattern Flag. The chart setup commonly appears in an established uptrend to provide buyers with an opportunity to recuperate bullish momentum.
Moreover, the crypto analytics firm Sentiment has utilized the MVRV Z-Score to identify valuation extremes in the cryptocurrency market. According to their recent analysis, Toncoin, Bitcoin, and Ethereum are currently overvalued, while Uniswap and Shiba Inu are undervalued.
According to MVRV Z-Score, which identifies overvalued and undervalued assets based on average trader returns, top caps are in the following categories:
Overbought: Toncoin, Bitcoin, Ethereum
Underbought: Uniswap, Shiba Inu pic.twitter.com/PWESMh7wRf
— Santiment (@santimentfeed) June 29, 2024
This tool compares market value to realized value, providing insights into potential overbought or underbought conditions. Thus, the Shiba Inu is better positioned for a price appreciation and reclaim its recent lost value.
A potential reversal from the lower trendline could push the asset 28-30% before challenging the key resistance of the flag pattern. Until this overhead trendline is intact, the SHIB price could prolong its current correction trend.
Thus, a potential breakout from the flag pattern is needed to signal the resumption of the prevailing rally. If buying pressure continues, the SHIB price prediction suggests a potential rise to $0.00003, with a further target of $0.000045.
Technical Indicator:
- EMAs: The 20-day Exponential Moving Average wavering close to $0.0000183 increasing the supply pressure for this resistance.
- ADX: The Average Directional Index slope shifting flag indicates the weakening bear momentum after an overextended fall.
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from CoinGape