The cryptocurrency meme-Shiba Inu (SHIB) has lost more than 50% of its market valuation in three weeks since its all-time highs in late October.
The SHIB price fell to $ 0.00004251 on November 19 after correcting nearly 55% from its all-time high of $ 0.00008854. Its price recovered a small portion of its losses on Friday, but the move seemed indecisive due to lower trading volumes meaning few traders supported the rebound trend.
Some analysts have noted that a sharp decline in the market for Shiba Inu is inevitable after its price has climbed more than 1,100% since October 1.
For example, an independent market analyst, under the pseudonym John Wick, called SHIB’s ongoing price correction is a “peak signal”, suggesting further massive selling in the sessions to come.
“Buy the dips”
Price fluctuations of 50% or more are not too rare in the cryptocurrency market. For example, Bitcoin had gone from around $ 65,000 to less than $ 30,000 in less than thirty days earlier this year. But later, BTC rebounded to set a new high at $ 69,000.
At the heart of Bitcoin’s volatile rebound was a well-publicized narrative that projected it as a hedge against rising inflation around the world. Meanwhile, for Shiba Inu, the basic bullish narrative remains “the community”, as declared by one of the play’s most popular endorsers, David Gokhshtein.
The founder of Gokhshtein Media and CEO of PAC Protocol recalled that the bullish performance of Shiba Inu this year is explained by the strengthening of community support and despite the lack of major endorsements from celebrities and billionaires.
Same $ FLOKI with their marketing will bring my eyes here.
– David Gokhshtein (@davidgokhshtein) November 13, 2021
Gokhshtein tweeted friday asking his supporters who among them are “buying the lows”, thus also reiterating his faith in a potential rebound in SHIB prices even after a price correction of more than 50%.
Bul technical outlook
Shiba Inu’s ongoing price correction has lowered its trend inside what appeared to be a bullish flag range, increasing the possibility of the coin continuing its uptrend in the future.
In detail, Bull Flags occurs as a brief break in the trend after a sharp rise in prices.
Related: Supersize McShib: Shiba Inu The Biggest ERC-20 Exploitation Among ETH Whales
The pattern looks like a downward sloping channel / rectangle represented by two parallel downward trend lines. Typically, Bull Flags will break the price of the trendline above levels of length equal to the height of the previous uptrend (called Flagpole).
That said, SHIB’s next attempt to break its flag’s upper trendline, if accompanied by an increase in trading volume, could push prices up towards $ 0.00010000.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move comes with risk, you should do your own research before making a decision.