Shiba Inu at a Crossroads: Breakdown Weakens SHIB
Date: 2023-09-16 Author: Dima Zakharov Categories: CRYPTO PAYMENTS
Worrisome Shiba Inu (SHIB) Price Decline and Bearish Trend
The price of the cryptocurrency Shiba Inu (SHIB) has reached a critical juncture, causing concern among investors as it dropped and closed below the key horizontal support level of $0.0000080. This reversal signals the possibility of a shift in the long-term trend towards a bearish one, raising apprehensions and doubts within the investment community.
On both the weekly and daily charts of Shiba Inu (SHIB), clear bearish signals are evident, confirming the likelihood of further price decline. Starting from August, the SHIB price began a steady descent after breaking through the horizontal support level at $0.0000080. This area played a critical role, serving as support since May 2022. Currently, the price is approaching the nearest support level at $0.0000060, and further decline to this level could result in an additional 18% drop.
However, despite the technical setbacks and the bearish sentiment in the market, an interesting phenomenon deserves attention. In September, the number of Shibarium wallets exceeded one million. This could indicate growing interest in this coin and possibly a belief in its long-term prospects.
Technical analysis and prospects for Shiba Inu (SHIB)
Technical analysis also confirms the bearish trend. The weekly Relative Strength Index (RSI) demonstrates a bearish trend, dropping below the 50 mark. When the price encountered resistance, the RSI bounced off this level and is now below it. These factors collectively indicate a strengthening bearish trend for Shiba Inu.
Signals on the daily chart also carry negative momentum as the price dipped below the ascending support line that had been present since June. The daily Relative Strength Index (RSI) also indicates a bearish sentiment, currently sitting below the 50 mark and showing no signs of bullish divergence.
At present, the most likely scenario is the continuation of SHIB's price decline towards the support level at $0.0000060. However, it's important to note that if the coin manages to recover above the $0.0000080 level, it could serve as a signal for a potential bullish trend reversal, nullifying the previous bearish signals. In such a case, the price could rise to the descending resistance line at $0.000010, representing a 32% increase from the current price level.
Investors and traders are closely monitoring the developments in the SHIB market, considering its significant attention in the cryptocurrency industry and the interest from the investment community. This situation remains one of the most discussed topics in the cryptocurrency space, and its further development will continue to attract attention in the future.
