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The Shiba Inu price plummeted more than 10% in the last 24 hours to trade at $0.00002608 at press time.
The Shiba Inu Price Loses Key Support
4-hour chart for SHIB/USDT (Source: TradingView)
As the Shiba Inu price continues to make waves in the crypto market, a closer look at its 4-hour chart reveals a series of intriguing technical patterns that could hint at its short-term trajectory. With recent closing prices showing a downward trend, market participants are keenly observing the asset’s performance for potential trading opportunities.
The 9 EMA (Exponential Moving Average) and 20 EMA have been a focal point for analysts. These levels are indicative of a bearish crossover, as the price action remains below these moving averages, suggesting a potential bearish outlook in the short term.
Moreover, the MACD (Moving Average Convergence Divergence) indicator provides further evidence of the bearish momentum, with the MACD line trending below the signal line across recent observations. The histogram values reinforce the bearish sentiment, indicating that the downward momentum may persist.
The RSI (Relative Strength Index) readings have dipped below the 40 mark in recent periods, hitting lows of around 26.55, which traditionally signals a bearish sentiment and potential oversold conditions. However, traders often view such levels as potential turning points should the market sentiment shift.
SHIB currently faces immediate resistance at $0.00002775 and $0.00002795. A break above these levels could signal a short-term bullish reversal, potentially opening the door to higher prices. On the downside, support is found at $0.00002489, $0.00002475, and $0.00000964, with these levels acting as potential floors should the bearish trend continue.
Possible Trade Considerations
Given the bearish indicators, traders may consider short positions on rallies towards resistance levels, with potential exits before hitting major support levels. Conversely, should the asset show signs of recovery, long positions could be considered on dips, targeting resistance levels as potential exit points. However, the market’s volatility necessitates a cautious approach, with stop-loss orders to manage risks effectively.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Ecoinimist is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
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