Shiba Inu (SHIB) is now trading at roughly a 4.2billion dollars in market capitalization. In the previous two months, the Shiba Inu price has increased by about 350%. This week, the cryptocurrency surpassed both DogeCoin and SafeMoon to become CoinMarketCap’s most popular digital money. As a result, the coin has been branded the “DogeCoin killer.”
The price of the SHIB is forming a bottom reversal pattern. Starting on May 10, the SHIB price dropped 83 percent from its peak of $0.0000394 to $0.00000654 in less than ten days. Shiba Inu has intentions to make a comeback, despite the fact that the decline was painful, to say the least.
Following this enormous decrease, the SHIB price has remained in a state of stabilization for more than two weeks. This range-bound movement has evolved into the Adam and Eve bottom reversal pattern.
Two valleys, one with a V-shaped bottom and the other with a rounded base, make up this technical formation. The first swing low is known as Adam, while the second is known as Eve. When the peaks of the two swing lows are connected with trend lines, a horizontal resistance level is produced.
The breakout point is multiplied by the distance between the peak and the valley to determine the target for this technical formation. As a result, a decisive close over $0.0000109 will indicate a breakout from the reversal pattern, implying a 30% increase to $0.0000146.
However, if the SHIB price fails to break past the $0.0000109 resistance level, it will signify a lack of buyers. The bullish thesis will be invalidated if the subsequent downswing achieves a convincing closure below the May 31 swing low of $0.00000784. In that situation, Shiba Inu might continue its downward trajectory to $0.00000731, the lowest point in the second valley.
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