- SHIB’s steady decline has led to the formation of a descending triangle.
- The lower trendline of the triangle forms a critical support level.
Leading meme coin Shiba Inu [SHIB] has formed a descending triangle, which it may break below if market sentiments remain bearish.
At press time, SHIB exchanged hands at $0.000023, trading close to the lower trendline, which created a critical support level.
When an asset’s price declines, a descending triangle is formed to suggest to market participants that the downward price movement may continue.
What next for SHIB?
An assessment of SHIB’s price movements hinted at the possibility of a break below the support line.
For example, the meme coin’s Relative Strength Index (RSI) sat at the neutral line of 50.0 and was in decline at the time of writing.
This signaled that coin distribution was about to outpace accumulation among market participants.
Since the 9th of April, the coin’s Elder-Ray Index, which measures the relationship between the strength of the altcoin’s buyers and sellers in the market, has returned predominantly negative values.
When this indicator negative like this, bear power dominates the market. As of this writing, SHIB’s Elder-Ray Index was -0.0000017.
If the bears force a decline below the triangle’s lower trendline, which forms support, readings from SHIB’s Fibonacci Retracement showed that the meme coin’s value may drop under $0.00002 to trade at $0.000013.
However, if sentiment reverses and the bulls regain market control, SHIB’s value may rally toward $0.000027.
Futures traders are unmoved by recent losses
Despite the steady decline in SHIB’s value, its Futures market participants have remained resilient.
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Author: Abiodun Oladokun
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