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#Altcoins Rally A Bear Flag Signals a Collapse in the Price of Shiba Inu
In the 2-day price chart, SHIB is forming a pennant pattern, which could break in either direction. However, the price is currently trading near the lower trend line of the pennant, around $0.00001158, and a clear break below this level may signal a complete breakdown of the pattern. The price of Shiba Inu has attempted several recoveries from the lower trend line.
Additionally, the Average Directional Index (ADX) has weakened. It dropped from 22 in mid-July to 18.4, indicating a decrease in the overall strength of the trend. A falling ADX near the support line of a pattern typically indicates that the price is likely to decline without strong buying interest.
The Average Directional Index (ADX) measures the strength of a price trend, whether it is upward or downward. A falling ADX indicates that the trend is weakening and is not gaining momentum.
If SHIB loses support at $0.0000115, it could drop further, as confirmed by the Input/Output settings. However, for this bearish setup to be invalidated, SHIB must first surpass $0.0000132 and $0.0000137. However, if it can break through the pennant resistance, particularly around $0.0000150, the trend will become bullish.