- Shiba Inu price on a knife’s edge as it approaches its final support zone.
- Flash-crash is likely if buyers are unable to support Shiba Inu.
- Upside potential, however, does exist and could initiate a massive short-squeeze.
Shiba Inu price found itself a victim of the selling pressure faced across all financial markets on Wednesday. Shiba Inu has found some technical support at the 50% Fibonacci retracement at $0.000049, but buying appears to be drying up. As a result, Shiba Inu is very much at risk of a capitulation move towards $0.0000100.
Shiba Inu price at risk of a -80% drop, but bulls could surprise any late short-sellers
Shiba Inu price action is developing one of the most sought-after bearish Point and Figure patterns: the Bearish Catapult. The bearish Catapult forms after a breakout below a triple-bottom, followed by a slight bounce by buyers, and then a breakout below a double-bottom. There is a theoretical short idea with a sell stop order at $0.0000400, a stop loss at $0.0000550, and a profit target at $0.0000100. Ultimately, Shiba Inu bulls must hold that $0.0000400 value area, or Shiba Inu could face a very violent flash crash. However, in the event of a breakout below the double-bottom, downside risk may be limited to the $0.0000150 value area.
$0.000005/3-box Reversal Point and Figure Chart
The short setup will be invalidated if Shiba Inu price moves above $0.000057.
On the long side of the market, there is an aggressive buying opportunity based on a Pole Pattern setup. The hypothetical long entry would be a buy stop order at the 100% Fibonacci expansion at $0.0000550, a stop loss at $0.0000475 and a profit target at $0.0000900. The entry is aggressive because it is based on a three-box reversal near a retest of the prior descending triangle pattern and is at risk of being rejected quickly. However, if buyers can sustain Shiba Inu price above the descending triangle, that will likely trigger a short squeeze and bring in a large number of FOMO buyers.
$0.000025/3-box Reversal Point and Figure Chart
The hypothetical long trade idea is invalidated if Shiba Inu price continues to drop below the $0.000040 level.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
US presidential election outcome could shape the future of crypto
US citizens will go to the polls to elect a new president on November 5, and their choice could be key for the future of the crypto industry and thus the price outlook for Bitcoin (BTC).
Bitcoin ETFs beat Gold ETFs with 65% gain since launch
Bitcoin ETFs have reshaped the digital asset investment landscape since their approval in January. Their total assets under management climbed over $70 billion during the weekend, placing them ahead of other investment products, including gold.
XRP eyes 10% rally amid relisting across crypto exchanges and growing institutional demand
Ripple's XRP is trading at $0.5050 up slightly by 0.2% in the past 24 hours as it struggles to sustain a move above a key symmetry triangle resistance. Meanwhile, in its recently released Q3 report, Ripple noted the rising listing and relisting of XRP across crypto exchanges and global platforms.
Ethereum Price Forecast: ETH struggles below $2,500 amid State of Michigan pension fund investment in ETH ETF
Ethereum is trading near $2,420, down about 1% on Monday, but could bounce off a key descending trendline close to the $2,258 historically high demand zone. Meanwhile, the State of Michigan pension fund revealed an investment of $11 million in ETH exchange-traded funds.
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.