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- 1 The Shiba Inu crypto has been on a free fall for the last five intraday sessions.
- 2 The daily chart witnesses the formation of an interesting channel pattern.
Shiba Inu crypto is struggling to find stable ground and has been in a declining trend. The bears are currently in control of the market, and the price has been on a downward trend for the 5th consecutive session, hovering below the 50-day EMA.
Moreover, Last week started off on a positive note, with the crypto experiencing a surge in its price, reaching a high of $0.000028. However, things quickly took a turn for the worse, and the latter half of the week saw a correction in the price, which is continuing this week.
The daily chart shows an interesting pattern. While the trend may be unclear, with the help of price action and technical indicators, we can get a better idea of what to expect in the upcoming sessions.
Shiba Inu Crypto Price Fall Coincides With Broader Market Correction!
The dip in Shiba Inu’s price coincides with a broader market correction, which has led to Bitcoin’s lowest level in about a week. This has raised concerns among bulls, who are closely monitoring Shiba Inu’s ability to hold critical support levels and regain its upward momentum.
However, the current price is unsustainable at the CMP due to the heavy selling pressure. Additionally, the bulls failed to capitalize on the gains made earlier in the previous week, leading to a selloff that allowed the sellers to reclaim their dominance at the highs.
The outcome of this critical price test will depend on various factors, including investor sentiment and the overall trajectory of the cryptocurrency market. With volatility high and uncertainty prevalent, bulls may need to show resilience.
Now, if the price drops further, the next support could be between $0.000019 and $0.000021. On the other hand, if Shiba Inu bounces back from the lower levels, it is likely to face resistance from $0.000030 and $0.000027.
Shiba Inu Daily Chart Illustrates An Interesting Pattern Formation
Additionally, on the daily chart, there is evidence of a declining parallel channel pattern formation, with the price currently oscillating between the upper and lower boundaries of the channel. It is likely that the Shiba Inu price will remain range-bound until it breaks out of the channel on either side. This breakout or breakdown may indicate a clear trend in the crypto market.
SHIB has dropped below the 50-day EMA, indicating a weakening trend. However, the 200-day EMA is still located below the price, which may act as dynamic support for the crypto.
In addition, the MACD indicator shows a bearish crossover, indicating a continuation of the price on the lower side. The price has further potential to fall until it reaches the recent support level of $0.0000211.
Conclusion
SHIB is sinking like other coins in this correction phase, the daily charts signal short term bearishness lay ahead. It has dropped below the 50 and 200 day EMAs. The RSI and MACD are painting a grim picture.
Technical levels:
- Support Levels: $0.000019 and $0.000021
- Resistance Levels: $0.000027 and $0.000030
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
