The Shiba Inu (SHIB) coin price has experienced a 43% correction this year. This performance contradicts what the broader market expected during the last quarter of 2024, with many calling for a full-blown bull market.
While SHIB is not alone in experiencing this decline, it appears that the cryptocurrency might experience relief as the first quarter (Q1) of 2025 approaches its final stretch.
SHIB About to Say Goodbye to Downtrend
On Dec. 5, 2024, SHIB’s price was $0.000033. As of this writing, the value has dropped and currently trades around $0.000015.
This decline led to the formation of lower highs and lower lows, which later led to a falling wedge. A falling wedge is a bullish reversal pattern that occurs when two descending trend lines converge, indicating weakening selling pressure.
This pattern suggests an imminent breakout to the upside, especially with increasing volume. However, to validate this pattern, the price has to break out of the upper trendline.
The daily chart shows that the Shiba Inu coin price has risen above the lower trendline as of this writing.
While it has yet to break the upper trendline, the Chaikin Money Flow (CMF) position indicates that it could soon breach that resistance.
The CMF reading has climbed above the signal line at 0.09, indicating selling pressure.
Should the reading rise as March approaches, then SHIB could erase part of the losses it has endured.
SHIB Price Analysis: Time to Sustain the Rebound
Interestingly, the technical setup on the daily chart is also similar to the price action on the 4-hour chart. However, unlike the image, the Shiba Inu coin price is on the verge of breaking above the upper trendline of the wedge, around $0.000015.
If validated, then SHIB could continue to hit higher highs. One indicator supporting this potential move on that timeframe is the Moving Average Convergence Divergence (MACD).
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The MACD measures momentum and trend direction. It has formed a golden cross, where the shorter Exponential Moving Average (EMA) crosses above the longer one.
This is typically a bullish sign, indicating that momentum may shift to the upside.
Should this trend continue, SHIB’s price might rally toward $0.000020. The cryptocurrency’s value could slide to $0.000025 in a highly bullish scenario.
On the flip side, if the Shiba Inu coin price faces rejection at the upper trendline of the wedge, it might not experience relief in March. Instead, the cryptocurrency’s value could slide to $0.0000012.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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