Shiba Inu (SHIB) Forming Reversal Pattern Ahead of New Year
Shiba Inu has set a new local record recently, as its volatility decreased to levels we have not seen for at least three months. Luckily, an extremely low volatility period is usually a sign of an upcoming reversal or a volatility spike, and the pattern we are seeing on the chart today could be a confirmation of this thesis.
If we take a look at the intraday chart of the token, we can clearly see a descending triangle pattern formation, which has been confirmed by the ascending volume profile. By getting closer to the end of the formation, trading volume should rise significantly, causing an expected volatility spike.
Unfortunately, the technical state of the token is not the only thing that investors and traders are looking at. Macro factors like risk demand and inflows to the industry also have a significant effect on assets like Shiba Inu or Dogecoin.
However, the formation of the aforementioned pattern could become a great foundation for a potential reversal. On the daily chart of the token, we will not be able to see the triangle as the only observable thing on that timeframe is the direct and narrow price rangebound.
Sadly, the end of 2021 and the beginning of 2022 did not give us any insights about the potential moves of SHIB in the new year. The asset was in a completely different state in December of last year and was in the process of a reversal.
At press time, Shiba Inu is trading at $0.000008, and its next target would be a return above the $0.00001 price level, which has been acting as an important threshold for the asset's stability.