Will Shiba Inu Correction Hit $0.000006?

Will Shiba Inu Correction Hit $0.000006?

The SHIB price challenge the $0.000007 monthly support threatens coin holders for a longer downtrend

Published 1 min ago

Since the tail end of August, the SHIB price trajectory has been notably downward, plunging from a peak of $0.00000838 to a recent low of $0.0000069. This sharp 16.5% descent, aligned with the broader market bearishness, paints a picture of unwavering SHIB sellers. With the falling price challenge a crucial monthly support, the popular memecoin is under threat for further downfall. Is it time to cut losses and sell?

Also Read: Shiba Inu’s Soaring 323% Burn Rate Captures Investors’ Attention

$0.000007 Support Breakdown Will Trigger a 9% in the Near Term

  • The $0.000007 support stands as strong support for crypto buyers
  • The dynamic resistance of the 20-day EMA could assist the seller in prolonging the downward trend
  • The intraday trading volume of the Shiba Inu coin is $122 Million, showing a 62% gain.

SHIB Price PredictionSource- Tradingview

At the time of writing, Shiba Inu price stands at $0.0000072, teetering precariously at the multi-month support of $0.000007. The uptick in volume accompanying this descent underscores the seller’s commitment to a potential prolonged correction phase, especially if it breaches the critical $0.000007 support. 

Should the daily candle close below the $0.000007 mark, the sellers would be firmly in the driver’s seat, likely pushing SHIB further into bearish territory. A confirmed breakdown could see Shiba Inu taking another tumble by approximately 9%, targeting the immediate support at $0.0000064. 

If this bearish momentum doesn’t wane, SHIB might even find itself at $0.0000054, effectively wiping out all the gains it accrued from June through mid-August.

Here’s How SHIB Price May Trigger a Sustained Recovery

Although the Shiba Inu coin is currently experiencing a bearish trend, it’s important to note that this decline still fits within the confines of an ongoing falling-wedge pattern. If the trend continues, we might see the coin approaching the support trendline of the pattern around $0.000005, presenting a potential opportunity for buyers. That said, a solid recovery for Shiba Inu will likely be confirmed only if there’s a breakout above the pattern’s resistance trendline.

  • Exponential Moving Average: The coin price trading below daily EMAs(20, 50, 100, and 200) accentuates the overall trend as bearish
  • Relative Strength Index: The RSI slope breakdown below  40% reflects the selling momentum is active.

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Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading

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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