Four consecutive bearish candles have kept Shiba Inu price bleeding since Monday. The bearish outlook, which appears in both short-term and long-term timeframes covers most of the crypto market, apart from a few selected altcoins standing out with FOMO price pumps.
SHIB is trading at $0.00000725, down 1.1% on Wednesday amid a noticeable drop in trading volume to $57 million. With a market cap of $4.2 billion, Shiba Inu ranks 16th among other cryptos.
Can Shiba Inu Price Exhaust The Downtrend
Shiba Inu price holds above an important ascending trendline which bulls must defend to prevent declines from multiplying below $0.000007. The last time SHIB slid below a similar trendline, a sell-off ensued, resulting in a 16.4% drop from $0.00000842 to $0.00000704. A slip below the trendline support could mean a sell-off to the next sturdy support at $0.0000064.
A buy signal from the Moving Average Convergence Divergence (MACD) indicator is encouraging traders to consider increasing their exposure to long positions. This call to buy SHIB occurred late last week, with the blue MACD line crossing above the signal line in red.
The Relative Strength Index (RSI) holds above 40, following a rejection from the midline. It must keep moving higher to create a positive divergence with the price trend, which will keep Shiba Inu steady.
If support at $0.000007 in collaboration with the ascending trendline holds, sentiment will improve regarding a SHIB price recovery for gains beyond $0.00001. The first step toward such a climb is to defeat the immediate seller congestion at $0.0000074.
As confidence in the uptrend improves, momentum will also build to boost Shiba Inu through other stronger hurdles at $0.000008, slightly below the 100-day Exponential Moving Average (EMA) (red), $0.000009 marginally above the 200-day EMA (purple) and the ultimate resistance at $0.00001.
Shibarium Protocol Transactions Are Exploding
It is slightly over a month since Shiba Inu developers launched the Ethereum Layer 2 protocol Shibarium mainnet. Although the network started on a rough patch amid safety and scaling concerns its second debut has been nothing but a success.
Based on the Shibarium explorer, the scaling solutions protocol has seen 1,250,865 wallets registered. Transactions on the network keep soaring, currently at 3.1 million at an average gas fee of 2.77 Gwei.
Shibarium is expected to be at the core of the Shiba Inu ecosystem supporting decentralized exchanges (DEXs), the metaverse, decentralized finance (DeFi), and blockchain games like the Shiba Eternity.
The Layer 2 protocol built on Ethereum for Shiba Inu achieves higher transaction speeds, and lower fees while raising the token’s stake in the crypto market and particularly the decentralized finance ecosystem.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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