Shiba Inu recently fell towards its 6-month support on its daily chart. Can the bulls step in to provoke a rally?
Edited By: Jibin Mathew George
- Shiba Inu continued to face significant selling pressure and kept losing key support levels
- Traders should now monitor the $0.0000128 support level closely
Shiba Inu (SHIB) has been under strong selling pressure lately, with the altcoin continuing its downtrend as the broader market remained volatile.
However, its latest price action seemed to indicate some potential for a short-term recovery. This, even though the long-term outlook remained pretty uncertain. At the time of writing, SHIB was trading at $0.0000133, down by nearly 2.8% in the last 24 hours.
SHIB bears continue to exert pressure
SHIB continued its downtrend and moved within a descending channel, at press time.
Here, it’s worth noting that the price remained below key EMAs, with the 20-day EMA at $0.0000144, the 50-day EMA at $0.0000161, and the 200-day EMA at $0.0000193. All of these EMAs pointed south, signaling a bearish trend.
The MACD (moving average Convergence divergence) showed flat momentum, with the MACD line and the Signal line both slightly below the zero line. This suggested that while bearish momentum had slowed down, there was still no clear signal of a bullish reversal.
For a bullish reversal, SHIB needs to reclaim and sustain above the 20-day EMA. A move above this level could encourage more buying and potentially lead to a test of the 200-day EMA at $0.0000193.
However, this scenario seems challenging in the near term unless the bulls find a convincing pattern breakout. The RSI (Relative Strength Index) had dipped near the oversold region, showing some potential for reversal. However, any bullish move could be short-lived unless accompanied by strong buying volume.
Key levels to watch!
The immediate support level seemed to be at $0.0000128. If the price breaks below this level, it could lead to further downside, with the next major support at around $0.0000089.
On the other hand, if the buyers push SHIB above the 20 EMA at $0.0000144, it could provoke a near-term rally towards the $0.0000161 and $0.0000193 resistance levels.
Can SHIB buyers reverse the trend?
The overall long/short ratio for the last 24 hours stood at 0.9535, highlighting a near-balanced but slightly bearish sentiment among traders.
However, the SHIB/USDT long/short ratio was at 2.6364 on Binance, showing that a significant portion of traders are betting on a potential reversal. Investors should also keep an eye on broader market trends and any significant news updates that could affect SHIB’s price action in the coming days.
