Shiba Inu Price Analysis: 24% Potential Drop to $0.00001 Amid Falling Wedge Pattern

• Shiba Inu’s price analysis indicates a potential 24% decline to $0.00001 during the current market correction.
• The oversold Relative Strength Index (RSI) is currently at 26%, suggesting the possibility of a price rebound driven by technical support.
• Approximately 374,000 addresses have purchased around 150 trillion SHIB at the $0.00001 level, providing a vital support base that could forestall further decline.

Shiba Inu price analysis signals a challenging week ahead with a potential 24% drop to $0.00001, held by technical support and substantial buyer interest.

SHIB Price Under Pressure Amid Market Correction

The price of Shiba Inu (SHIB) has been under significant pressure, exhibiting a steep 24% drop as the broader cryptocurrency market faces a correction. Notably, the RSI is in the oversold zone at 26%, typically a precursor for a price rebound due to technical buying interest. Support from around 374,000 addresses that collectively purchased 150 trillion SHIB tokens at $0.00001 highlights the significance of this price level as a defensive barrier against further declines.

Key Technical Patterns Indicating Potential Reversal

The SHIB daily chart showcases a falling wedge pattern—an often bullish reversal pattern comprised of two converging downward-sloping trendlines. Historically, this chart structure signifies asset consolidation before a potential breakout. The critical support at $0.00001, reinforced by substantial address activity, could prove pivotal. A breach of this level might invite further declines, but it also presents a robust foundation for a potential bullish reversal.

Broader Market Impacts and On-Chain Metrics

In parallel with SHIB’s troubles, the overall crypto market has been influenced by macroeconomic factors including geopolitical tensions and recession fears in the US. These elements have contributed to a bearish sentiment. However, according to intotheblock analytics, the transaction activity and holding patterns around the $0.00001 price mark illustrate strong demand at this level, reducing the likelihood of panic selling and potentially stabilizing the price. Additionally, the RSI’s deeply oversold status suggests that SHIB might be ripe for accumulating for those looking for entry points at a discount.

Conclusion

In conclusion, while Shiba Inu faces significant downward pressure with a looming 24% drop to $0.00001, multiple factors including oversold RSI, significant purchasing activity, and a falling wedge pattern suggest a potential for stabilization and rebound. Investors should carefully monitor these technical indicators and support levels as they navigate the volatile market environment.