Shiba Inu Price Signals 28% Crash After Bearish Pattern Breaks
Shiba Inu (SHIB) is trading at a monthly low after nearly $1 billion in crypto market liquidations on June 6 pushed meme coin prices lower.
Shiba Inu price is facing more bearish headwinds after breaking out from a bearish head and shoulders pattern, as whale selling activity surges. This breakout could result in a 28% decline to $0.000009.
At press time, SHIB price trades at $0.0000122 with a 4.5% decline in 24 hours.
The daily trading volumes were also up by 90% to $266 million, per CoinMarketCap’s data, with the surge likely stemming from sell-side volumes.
The one-day chart for Shiba Inu price shows the formation of a bearish head and shoulders pattern. This pattern usually signals that the trend is about to shift in the opposite direction, which, in this case, is from bullish to bearish.
SHIB, which was among the top-performing meme coins in May, has dropped below the neckline of this bearish pattern, a move that usually signals a potential crash.
After breaching this support level, SHIB price could plunge by 28% to $0.000009, which will be its lowest price since January 2024.
The potential downtrend portrayed by the head and shoulders pattern is likely to play out because of the upward sloping ADX line.
The indicator’s upward move confirms that the current downtrend could continue, making a Shiba Inu price crash to $0.000009 more likely to occur.
Meanwhile, the RSI indicator shows that the bearish momentum is growing strong after a steep slope. The indicator’s movement shows that the bearish trend depicted by the head and shoulders pattern might play out.