Shiba Inu Now Maintains Support at $0.000020

Shiba Inu now maintains support at $0.000020 after a failed attempt to breach a significant resistance trendline which led to bearish reversal.

As the cryptocurrency landscape shifts, Shiba Inu (SHIB) has found itself in the midst of a challenging market.

Following a 3% dip in Dogecoin’s value over the past 24 hours, Shiba Inu has mirrored this decline, experiencing a seven-day return of approximately -7%.

This bearish trend has pushed SHIB’s market price closer to a crucial psychological threshold of $0.000020.

Market Overview and Current Position

Shiba Inu currently boasts a market capitalization of $12.51 billion, securing its position as the second-largest meme coin in the crypto space.

However, the broader market conditions are casting a shadow of uncertainty over the potential trajectory of SHIB prices.

With fluctuating investor sentiment and external market pressures, many are left wondering whether a price rebound is on the horizon.

In-Depth Price Analysis

Technical Indicators and Resistance Levels

An examination of the 4-hour price chart for Shiba Inu reveals a failed attempt to breach a significant resistance trendline.

This situation has illuminated a robust supply zone located near the 50% Fibonacci retracement level, which stands at $0.00002489.

The inability to overcome this resistance has led to a bearish reversal, pushing the price below the 38.20% Fibonacci level at $0.00002322.

Currently, Shiba Inu is testing a critical bullish support level at the 23.60% Fibonacci retracement, situated at $0.00002130.

Additionally, it is nearing the pivotal psychological level of $0.000020.

The repeated rejections at lower price points have placed Shiba Inu in a short-term lateral phase, characterized by a lack of significant upward movement.

Moving Averages and Market Sentiment

The bearish momentum has also been corroborated by the positioning of the moving averages, with the 20-day Exponential Moving Average (EMA) falling below the 50-day EMA.

This alignment serves as a bearish signal, indicating that the downward pressure on SHIB prices may continue unless a substantial shift occurs in market sentiment.

However, a glimmer of hope arises from the 4-hour Relative Strength Index (RSI), which has slipped into the oversold territory but has since stabilized.

This development suggests a minor bullish divergence, heightening the potential for a price reversal in the near term.

Potential Price Targets for Shiba Inu

Looking ahead, the price action from late December offers a possible scenario for Shiba Inu’s future trajectory.

It is anticipated that SHIB could enter a new consolidation range, oscillating between the 23.60% and 38.20% Fibonacci levels.

Currently trading at approximately $0.00002157, near the 23.60% level, Shiba Inu has the potential to challenge the upper boundary of this range at the 38.20% level should it manage to retest these zones.

Conversely, should the price close below the psychological support level of $0.000020, we may see further declines, potentially targeting the next support at $0.00001853.

While the current market conditions present challenges for Shiba Inu, the emergence of bullish divergence in the RSI signals a potential shift in momentum.

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Also Read: Shiba Inu Sees A Surge In Popularity Now Welcoming 7,548 New Wallets

About The Author

Frank Nez

Frank Nez is an American journalist whose research has been cited by SEC and Congressional reports. Frank Nez has been featured by prominent outlets such as TheStreet and NewsBreak. ‘Daily Crypto News’ is now an official CoinMarketCap news source.

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