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
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