Shiba Inu has seen a two-week period of price consolidation. There have been times when the coin has rallied but overall, the price action over the past 14 days has largely been in a consolidation phase. However, the coin may experience another 15% drop before it rallies. Here are some highlights:
- SHIB has formed a descending triangle pattern for the past few weeks which could trigger a breakout.
- The coin will, however, need to gather enough trading volume to achieve this.
- SHIB may drop at least 15% before enough demand is generated for a bull run.
How far can SHIB go?
At the moment, it seems like SHIB needs a few more days to consolidate further. Yes, it will drop of course, but we don’t see so much downside here. If anything, the 15% drop will bring SHIB within an important demand zone. This could finally provide the momentum needed for the meme coin to go on a strong uptrend.
Furthermore, SHIB is currently not far from its bottom after the May selloff. In fact, if the coin meme were to fall another 15%, it would be more or less within that price range. That means more downside at this time remains very low.
It is likely that the coin is actually nearing the end of the May bear cycle and as such, it is ready for a decisive bull run.
Is SHIB risky right now?
The risk is minimal as we speak. In the short term, we do not expect massive sales for the meme coin. However, with investor sentiment still struggling to recover, the volatile nature of SHIB will likely continue.
Nonetheless, SHIB could offer at least 25% in gains in June before it pulls back. As for long-term investors, improved sentiment in the market could push 3x growth by the end of 2022.
