Meme-cryptocurrency Shiba Inu (SHIB) has lost more than l% of its market valuation in three weeks since its all-time highs in late Oct.

SHIB's cost dropped to as low as $0.00004251 on November. 19 after correcting by almost 55% from its all-time loftier of $0.00008854. Its price recovered a small portion of its losses on Friday, merely the motion looked indecisive due to weaker trade volumes — i.due east., few traders supported the rebound trend.

Some analysts noted that a sharp pullback in the SHIB market was unavoidable later its price had skyrocketed past more than than 1,100% since October. 1.

For example, an contained market analyst, under the pseudonym John Wick, called SHIB'southward ongoing price correction a "topping signal," thus suggesting boosted selloffs in the sessions ahead.

SHIB/USD four-hr toll chart. Source: TradingView, John Wick

"Buying the dips"

Toll swings of 50% or more are not also uncommon in the cryptocurrency market. For example, Bitcoin (BTC) had plunged from around $65,000 to below $thirty,000 in less than xxx days earlier this year. Merely afterwards, BTC rebounded to establish a new record high at $69,000.

At the core of Bitcoin's volatile rebound was a well-circulated narrative that projected information technology as a hedge confronting ascent inflation all beyond the world. Meanwhile, for Shiba Inu, the core bullish narrative remains "customs," as stated by one of the coin's about popular endorsers, David Gokhshtein.

The founder of Gokhshtein Media and CEO of PAC Protocol reminded that Shiba Inu'due south bullish performance this year has come on the back of strengthening community back up and despite the absenteeism of major endorsements by celebrities and billionaires.

Gokhshtein tweeted Friday, request his followers who amongst them is "buying the dips," thus also reiterating his religion in a potential SHIB price rebound even after a 50%-plus price correction.

Bullish technical outlook

Shiba Inu'due south ongoing toll correction had information technology tendency lower inside what appeared like a bull flag range, raising possibilities that the money would proceed its move higher in the future.

In detail, bull flags occur as a cursory pause in the trend later a strong price movement higher.

Related: Supersize McShib: Shiba Inu the largest ERC-20 holding among ETH whales

The pattern looks similar a downward sloping channel/rectangle represented by two parallel falling trendlines. Typically, bull flags result in the price breaking out of the upper trendline to levels at length equal to the height of the previous uptrend (called a flagpole).

SHIB/USDT daily price chart featuring bull flag. Source: TradingView

With that said, SHIB'due south side by side attempt to break above its flag's upper trendline, if accompanied by a rise in trading volume, could effect in a cost leg college toward $0.00010000.

The views and opinions expressed here are solely those of the writer and do not necessarily reverberate the views of Cointelegraph.com. Every investment and trading move involves adventure, you should acquit your own research when making a decision.