The crypto market started August with a downward trend, leading to more selling of major digital assets. This began with Bitcoin dropping from $70,000 earlier this week and was worsened by fears and doubts from Middle East tensions. Shiba Inu’s price has also fallen, as meme cryptocurrencies often react quickly to market changes.
Over the past two weeks, Shiba Inu’s price has been steadily declining within a falling wedge pattern, marked by two converging downward trendlines. This has narrowed the price range, dropping from $0.00002 to $0.000015 a 25% decline and reducing its market cap to $8.81 billion. Alongside this, Open interest in SHIB futures fell from $53.5 million to $32.78 million, a 38% drop, indicating a potential loss of confidence or a shift in market sentiment as investors pull out.
If the selling pressure persists, Shiba Inu’s price could drop another 35% to hit the lower trendline at $0.0000095. As long as the current chart pattern remains, SHIB may continue to fluctuate between the two trendlines.
However, the recent decline in SHIB price is happening with lower trading volume, indicating that the selling momentum might be weakening. This suggests the downtrend could be ending soon. The falling wedge pattern often signals that a downtrend is about to reverse, so a breakout above the upper trendline could turn it into a support level and push the price up to $0.00002, and possibly $0.00003.
SEE ALSO: Trump Claims Bitcoin and Crypto Cheques Could Clear $35 Trillion US Debt
