Shiba Inu started to lose momentum last month after registering massive gains in four weeks. It recovered briefly and resumed swing low after failing to push higher. The drops appear more serious than expected.
Following the recent down surge, which triggered a serious negative sentiment in price, Shiba looks extremely bearish on the lower time frame as it shed roughly 12% loss in a month.
The price fell through several key levels to where it is currently facing a strong support level at $0.000011. An important level lies close to this support in case of a sudden dip. While the price closes weak in the past week, this week may produce more losses if the bears continue to gain control.
If we consider the downward impulsive move, which technically appears as a retest of the resistance trend line that got broken in January, there’s still room for a decrease as the price is yet to find support on the trend line.
A solid bounce off this trendline should provide a good entry for buyers to fuel another swing high from a short-term perspective. However, a colossal fall at this trend line could trap the price back in a bearish zone as it could facilitate a heavier loss to the December low.
The build-up is just starting on a weekly. We can expect the price to drop further before the end of the week. On a year-to-date scale, the price is still up by 37%, with a market cap of $6 billion.
SHIB Key Levels To Watch
At the current trading level of $0.000011, the closest support level to watch on the hourly chart is $0.0000105, followed by a psychological level of $0.00001. Below this level lies $0.00000936 and $0.0000084.
The January breakup level – $0.0000115 – has acted as a resistance level for the past few days. Some resistance levels above it are $0.0000129 and $0.000014 in case of a strong buy.
Key Resistance Levels: $0.0000115, $0.0000129, $0.000014
Key Support Levels: $0.00000105, $0.00000936, $0.0000084
- Spot Price: $0.000011
- Trend: Bearish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any projects.
Image Source: zieproject/123RF // Image Effects by Colorcinch
