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Shiba Inu (SHIB)the popular meme-inspired cryptocurrency, is currently experiencing a price drop and is trading at $0.0000208, which according to Bollinger Bands is quite close to the “oversold” zone – this is an important moment that traders should watch out for. .
Bollinger Bands show three lines: the upper, middle and lower bands. The middle band is based on the security’s 20-day moving average, while the upper and lower bands are two standard deviations from that average. SHIB is now approaching the lower band, which is 3.58% lower than its current price.
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When an asset approaches the lower band, it can be a sign that the market may be oversold. For SHIB, this suggests he may have fallen too far, too fast. Some people see this as a reason to be cautious because it can mean people have negative sentiment toward the market.
But this oversold situation may also be a sign that things are about to change. So the market could be poised to rebound if buyers step in.
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If the Shiba Inu Token can find support at this level and people start buying more, the next important resistance point to watch is $0.0000223, where the 20-day moving average currently sits. If SHIB can also break above the median, the next level to watch is the band above $0.0000246.
Even though things may seem a little bearish for SHIB For now, there is still a chance we could see some good news. Entering the oversold zone could be an opportunity for the market to rebound, so traders should be ready to act.