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#Altcoins Rally# A bearish Pennant indicates a collapse in the price of Shiba Inu.
On the 2-day price chart, SHIB is forming a Pennant pattern, which may break out in either direction. However, the current price is trading near the lower trendline of the Pennant, around $0.00001158. If it clearly falls below this level, it could indicate a complete pattern breakout. The price of Shiba Inu has attempted to bounce back from the lower trendline several times.
In addition, the Average Directional Index ( ADX ) has weakened. It has dropped from 22 in mid-July to 18.4, indicating a decrease in overall trend strength. A decline in the ADX near the pattern support line usually indicates that prices may fall without strong buying interest.
Average Directional Index ( ADX ) measures the strength of a price trend, whether it is an upward or downward trend. A declining ADX indicates that the trend is weakening and failing to gain momentum.
If SHIB loses support at $0.0000115, it may fall further, which is confirmed by the input/output setup. However, for this bearish setup to be invalidated, SHIB must first break through $0.0000132 and $0.0000137. However, if it can break through the Pennant resistance, particularly around $0.0000150, the trend will turn bullish.