Bitcoin price was hovering around $38,200 as the article was being prepared, with very little time left until the monthly close. The expected scenario was a rise at the monthly close followed by a test of support. Whether the gains from the early Bitcoin rally would persist until Thursday was uncertain, but the Shiba Coin chart was giving warning signals.
Shiba Coin, the second largest meme coin by market value, which failed to execute the anticipated parabolic rallies in 2023, took this situation as normal due to the lack of support from Shibarium, delayed launch, network issues, plagiarism allegations, and extremely low demand in the network.
The Shiba Coin team was unable to overlook the failure of the Shibarium project by diverting the community’s attention to a new project. This was not a situation we were used to.
Since the beginning of 2023, Shiba Coin’s price had been struggling below a descending resistance line. The resistance line experienced numerous rejections, particularly three times in November alone. The upper wicks showing the impact of selling pressure highlighted the lack of confidence among investors.
On the short-term six-hour chart, the popular meme coin had been trading within a descending parallel channel since November 11th. Such channels often contain corrective movements, and the mentioned breakout was making itself evident in the short term as well. Descending parallel channels frequently signal major breakouts, and the Shiba Coin chart was now indicating an imminent increase in volatility.