Shiba Inu Sees 8% Decline – Will $0.000012 Support Level Hold Firm?
Currently, Shiba Inu is stuck in a bearish trend, experiencing a consistent decline with intermittent minor recoveries. Despite several unsuccessful bullish attempts, the bears are controlling the price action of the second largest meme coin today.
Shiba Inu Price Decline
Moreover, the increasing liquidations in the cryptocurrency market are heightening fears surrounding meme coins. As the bears try to break down the support trendline, the question arises whether buyers can withstand the intense supply pressure above a certain price point.
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The latest 11% surge in Shiba Inu’s price, seen on the daily chart, brought the coin close to the declining support trendline of a falling channel pattern. However, following this surge, the bulls lost momentum before reaching a certain price mark. A gradual increase in supply near a specific price point led to a pullback phase, resulting in a 4.97% drop.
From its peak on Sunday at a certain price, Shiba Inu’s price fell by 8.11% within 24 hours. This bearish trend is undermining the previous bullish growth, posing a threat of a drop to a specific price or the support trendline.
Looking at the technical indicators, despite the Sunday drop, the MACD and signal lines are on the verge of a bullish crossover. Meanwhile, the 20-day EMA continues to act as a dynamic resistance, contributing to the ongoing reversal.
Regarding the potential for Shiba Inu surpassing a specific price mark, the current bearish cycle has diminished the bullish prospects. However, the 4-hour chart indicates a glimmer of hope for recovery.
According to Fibonacci levels, the recent downturn formed a series of five bearish candles testing the 23.60% Fib level at a certain price. Nonetheless, a bullish candle ended this pattern, with Shiba Inu aiming for a recovery run after a post-retest bounce.
Maintaining a position above the 23.60% Fib level will sustain the chances of a reversal. Additionally, a bullish breakout above a specific price ceiling could propel Shiba Inu to reach certain price levels in the near future. Support levels are identified at a psychological price mark and a certain low point on the downside.
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Kayode Michael is a seasoned cryptocurrency analyst, successful trader, and skilled writer with a strong command of cryptocurrency analysis and price action. He leverages his technical analysis skills to provide valuable insights into emerging market trends and potential opportunities for investors to make informed decisions.
