The entire cryptocurrency market was met with a surprising downturn today. Moreover, after breaking out of a descending resistance trend, Shiba Inu (SHIB) could be facing a massive 20% drop. Indeed, SHIB is set to be facing continued declines after breaking a short-term continuation pattern in mid-December.
Currently, SHIB is down a remarkable 9%, trading at $0.00000957 according to CoinMarketCap. Moreover, that drop has already led the asset to add another zero to its price over the last week. Yet, some hope remains that the price of the meme coin could recover rather quickly.
Shiba Inu Adds Zero, Faces Even More Declines Amid Current Pattern
In what was a shock to the digital asset sector, speculation regarding the potential rejection of a Spot Bitcoin ETF forced a plethora of tokens to take a hit. Indeed, the development led to more than $540 million being liquidated from the industry in just four hours.
The meme coin market was not left unaffected, but on top of its losses, Shiba Inu (SHIB) could be set to face an additional 20% decline. Moreover, its losses today came after the price had been on an upswing since June when it was at a low of $0.0000054. Moreover, it broke out from a descending resistance in November, after 480 days of being constrained.
The sharp downturn coincided with rather impressive burn rates for the asset over the last 24 hours. Specifically, more than 12 million SHIBs were burned, which notes a 300% increase. However, the overall sentiment that Shiba Inu is facing is certainly bearish when considering all the data.
BeInCrypto notes that SHIB has been trading inside of an ascending parallel channel since June of 2023. Moreover, it notes that the meme coin broke from a symmetrical triangle pattern. Subsequently, it could identify an end to upward momentum for the asset. Ultimately it has already fallen to the support level of $0.0000095.
The relative Strength Index (RSI) has also fallen below 50. Therefore, the asset is at risk of making the fall to $0.0000075. However, it if fares well at its current support level, it could face a 35% increase to the restisance line at $0000013.