With the high anticipation of Bitcoin price crossing $60K and potential Ethereum ETF listing, the meme coins are gaining momentum. Despite the pullback phase in motion in the top names like Dogecoin and Shiba Inu, the broader market recovery could influence a quick reversal rally. Will this recovery really result in a trend reversal for Shiba Inu price analysis in the coming week?
Shiba Inu Price Analysis: SHIB Faces Downward Trend Below 200-Day EMA
With a clear downward trend, the second-largest meme coin, Shiba Inu, has fallen below the 200-day EMA. Following a significant surge in late February, the subsequent decline has formed a pullback channel on the daily chart.
This channel pattern typically indicates a steady decline between two downward-sloping trendlines. However, trends eventually change, and the SHIB price appears poised to break out of this pattern.
The intense decline has reduced SHIB’s value by 22% over the past 30 days. This correction has brought the 50-day and 200-day EMAs close to a death cross signal. Currently, SHIB trades at $0.0000172, with an intraday increase of 4.4%, and its market cap stands at $10.14 billion.
According to data from Shibburn, the burn rate has skyrocketed by an impressive 325% today. This significant increase is largely due to the burning of 2.87 million coins in the last 24 hours.
Also Read: Shiba Inu Team Gives 4 Reasons Why SHIB ETF Is Imminent
Amid the broader market recovery, Shiba Inu price analysis has shown signs of a new bull cycle, gaining 14.8% over the last week.
As this bull cycle gains momentum, the Shiba Inu price is poised to reach the overhead trendline near $0.00002. A potential breakout could drive buyers to target $0.00003, followed by a high of $0.0000456.
However, the bearish channel and the impending death cross signal caution for a possible extended correction.
Technical Indicator:
- Moving Average Convergence Divergence: With a bullish reversal, the MACD (blue) and signal lines (orange) approach the zero line, and the positive histograms are on the rise.
- Exponential Moving Average: A potential bearish crossover between the 50D and 200D EMA is considered a major sell signal and could bolster the seller’s influence to prolong the current correction trend.
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