Shiba Inu (SHIB), the popular dog-themed meme coin, is showing signs of sustained bearish momentum as its price charts reflect a clear downward trajectory, hinting at the potential for further declines. According to TradingView data, the token saw a strong rally in early November, reaching a local high of $0.00003 before entering a consolidation phase characterized by lower highs and price tightening.
This consolidation, coupled with a declining market capitalization, suggests a slowing of bullish momentum which could lead to increased selling pressure. However, an increase in SHIB trading volume – up 10% in the last 24 hours – indicates that the cryptocurrency continues to attract traders’ attention, even amid bearish conditions. As the token approaches a critical support level of $0.000023, analysts are wondering if it could breach this zone and dive further to the psychological level of $0.00002.
Technical Indicators Point to SHIB Price Correction
Shiba Inu technical indicators provide further evidence of its bearish momentum, suggesting the possibility of continued price corrections. The MACD indicator, for example, signals a bearish crossover, with the MACD line at 0.00000181 approaching a descending crossover below the signal line at 0.00000179. This scenario indicates increasing selling pressure and a loss of bullish momentum. The histogram bars also align with the zero line, confirming the bearish outlook.
Likewise, the RSI, which is currently hovering around 58.61 below the signal line at 66.10, suggests that the cryptocurrency is approaching neutral territory after being overbought during its rally. This cooling off period aligns with the broader consolidation phase in the price chart. Even though trading volumes remain high, providing temporary resilience, the combination of technical signals suggests that sellers could dominate in the near term.
Moreover, SHIB liquidation data highlights strengthening bearish outlook as more long positions were liquidated than short positions. According to CoinGlass, $904.89k in long positions were liquidated in the last 24 hours, compared to $521.1k in short positions on major exchanges such as OKX, HTX, and CoinEX. This marked imbalance highlights a shift in market sentiment, with traders increasingly betting on the SHIB token price continuing to fall.
Can SHIB go down to $0.00002?
Given these market conditions, the cryptocurrency’s next move largely depends on whether it can sustain above critical levels or bearish momentum that pushes the price lower. The $0.00002532 level, for example, serves as immediate resistance, and any failure to reclaim this level could lead to intensifying selling pressure. However, if the SHIB token breaks below the $0.236 retracement level at $0.00002424, it could open the door for a decline towards the $0.00002259 support zone.
In a bearish scenario, a breakout of $0.00002259 would likely pave the way for a test of the psychological level of $0.00002. This area has historically provided strong support and could attract buyers looking for a possible reversal. On the other hand, if the SHIB cryptocurrency manages to regain its momentum and cross the retracement level from $0.618 to $0.00002622, it could indicate a renewed bullish sentiment, targeting higher resistance levels like 0 $.00002856 or even $0.00003044.
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