Shiba Inu Price Analysis: After 13% Daily Drop, SHIB Eyes Crucial Support Level

0
7


SHIB has recently broken below an ascending trendline which maintained the price for the past eight days, since the 23rd of October. Following a 13% daily decrease, Shiba Inu is now more than 25% far below Thursday’s all-time high level and currently facing the $0.000060 key support.

Key Support level: $0.000060

Key Resistance level: $0.000066

After Shiba’s massive rally in the past weeks, the price has initiated a deep correction and has managed to find support above the $0.000060 level. The price action has now formed a large descending triangle (this pattern tends to break down in most cases), as shown in the chart below.

The closest resistance is found at $0.000066. If broken, Shiba will likely attempt to break out of the triangle to the bullish side.

shibusd-oct31-p1

Technical Indicators of SHIB Price

Trading Volume: Volume has decreased during the descending triangle formation after recording massive amounts of daily volume over the past days. This is definitely not bullish, nor it is too bearish. Volume needs to pick up to give strength to any price direction.

RSI: On the 4-hour timeframe, the RSI is decreasing and it is likely for the price to retest the mentioned support level before a possible reversal is likely to occur.

MACD: The MACD is bearish on the 4-hour timeframe, and the MACD histogram is making lower highs on the daily timeframe. This is not a positive sign for the bulls and further consolidation can take place before any breakout from this formation.

Bias

After extreme euphoria, as mentioned in our previous SHIB analysis, the bias on Shiba has changed to neutral. The critical level is the next major support at $0.000060 needs to break.

shibusd-oct31-p2

Short-Term Prediction for SHIB Price

Expect to see Shiba at $0.000060 for some consolidation before any chance to resume the uptrend. This may present some interesting buy opportunities for Shiba, mainly if the price drops to lower levels. It is best to wait for the triangle to break before taking any position. Such a break can lead to high volatility upon breakout.

SPECIAL OFFER (Sponsored)

Binance Futures 50 USDT FREE Voucher: Use this link to register & get 10% off fees and 50 USDT when trading 500 USDT (limited offer).

PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to get 50% free bonus on any deposit up to 1 BTC.

Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

Cryptocurrency charts by TradingView.

LEAVE A REPLY

Please enter your comment!
Please enter your name here