Shiba Inu (SHIB) declines 7% in decline as more bad news looms on its horizon, SHIB will continue dropping, reaching out of the current key support lying at $0.000026 for testing it once again if the correction may continues and a bull turn is due.
Shiba Inu recently faced about 7% loss from the recent high; which has led analysts to expect a bearish trend. This fall happened in the aftermath of an attempt at recovery; technicals also indicate downtrends at larger levels. The focus here is on some major resistance and support points that are monitored as investors keenly observe the trends in the direction of SHIB in the crypto space.
SHIB Technical Analysis: Support and Resistance Levels
The price of Shiba Inu has now completed the accumulation phase at $0.000019 to $0.000014 from which it has broken out an upward trend. It has even reached a local peak position at $0.000034 but lately, the coin has initiated consolidation in the ascending channel.
- Immediate Resistance: Local resistance exists at $0.000034 since to date, the SHIB has failed to break away from the above resistance line and it moves upward as well.
- Current Support: Key support in the channel, is currently found at around $0.000026. Failure of the Shiba Inu to trade above that will continue taking it downward.
RSI Suggests Room for Consolidation: The Relative Strength Index (RSI) has come out of the overbought territory, meaning SHIB may see a period of consolidation or retracement before its next significant move. The neutral position of the RSI suggests that the market is waiting for the next clear signal to determine the direction of price action.
If Shiba Inu holds that support level at $0.000026 and the RSI continues to indicate positive momentum then it might go up.
The bearish view will still hold if SHIB breaks below said support level as more weaknesses will be seen with another possible test at the bottom Fibonacci levels.
Next Trades: Bullish or Bearish?
A breakdown over $0.000034 shall be a positive and positive confirmation sign that bulls are back into driving. In case the price lingers above this level, then the possibility of price climbing toward the higher levels of resistance also occurs.
Bearish scenario: A breakdown from the $0.000026 level would invalidate any bulls and could be perceived to be a deeper form of correction, with likely price targets at $0.0000228, or even $0.0000195, along the lines of Fibonacci retracement levels.
Shiba Inu: Market Sentiment
The current market sentiment seems bearish as Shiba Inu’s price action mirrors the general trends in the cryptocurrency market, which are short-term corrections and critical support levels that will dictate its price action. Investors are advised to keep an eye on these zones to know if SHIB can bounce back to a bullish mode or if it will continue retracing.
SHIB Price Prediction: Corrective Move or Bullish Continuation?
The 1-hour chart of SHIB depicts a forming ABC corrective structure, which may signal that a wave (v) of an impulsive move of a greater degree is done. SHIB has temporarily found support around $0.000026, but after a fall of 7%, one cannot completely rule out a deeper correction.
- Resistance Area: The $0.000028-$0.000030 range is a resistance zone where SHIB is struggling to regain its lost ground.
- Support Area: The retest of $0.000026 is the crucial support level. If it holds, SHIB will attempt to bounce again. If broken, it would likely drop lower to $0.0000228 (0.618 Fibonacci level) or $0.0000195 (0.786 Fibonacci level).
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Shiba Inu: RSI and Momentum
It remains neutral, leaving room for both consolidation and a potential breakout. A bullish outcome will be confirmed only if SHIB breaks above $0.000030, which would invalidate the bearish scenario and signal a shift to a bullish trend.
During this time, when support above $0.000026 is not maintained, the correction will continue, moving towards the lower-level Fibonacci retracements.
Conclusion: Shiba Inu, or SHIB, reached a critical point in its price action as the recent 7% decline has started to be taken as an indication of its bearish trend. On technical analysis, SHIB is consolidating inside an ascending channel where resistance exists at $0.000034 and main support is at $0.000026. As per the RSI, there’s still some more consolidation or retracement required before the actual move.
Investors should watch for SHIB to hold above $0.000026 and test the $0.000034 resistance level to see if it can break out. Failure to hold key support could lead to deeper corrections, potentially taking the cryptocurrency down to lower Fibonacci levels.
The price action of SHIB shortly would depend on how it would react toward these critical zones of support and resistance. Thus, since both the bull and the bear are ready to face each other, SHIB’s next move would define the short-term crypto market.
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