Cryptocurrencies

Analysis: Shiba Inu drops to a very important price level, can the price hold up here?


Shiba Inu has gone through a period of significant declines. As a result, the currency has arrived at a price level that has already been important several times. What the price will do here will probably be indicative of the rest of the price development. Let’s look at the graphs.

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The big picture

We’ll start this analysis with a look at the weekly chart. Here each candle represents 7 days, which allows us to look far back into the price history. This is important to analyze the strongest price levels. The Shiba Inu trend is also indicated here with blue arcs.

In the case of Shiba Inu, one level is very important, and that is the red zone around a price of 0.000018 dollars. As you can see, the SHIB has responded to this in the past, making it likely that – if the coin arrives here again in the future – the currency will respond to this again. The first response was in January 2021, and the second in August 2022.

When the currency surged in February of this year, the currency shot through it in one fell swoop, giving the currency enough strength to rise towards $0.000045 (the spot of the previous high). But when the coin returned to the red zone, there was another reaction.

Trend still upward

Despite the decline, the price of Shiba Inu is still in an upward trend. When the coin made its first higher high (December 2023), the downtrend was broken. This was followed by a higher low, and then we see that massive February surge.

No higher lows have been made since then, but the red zone would be a perfect place for this (near the question mark). This is still a place where the currency can respond. If that happens, the price looks promising for the coming weeks. But there is also danger lurking.

What if the coin falls through?

To analyze that, we will also look at the daily chart. Here each candle represents 24 hours, giving us a good idea of ​​the price action of recent times. Shiba Inu has been maneuvering in this zone for the fourth day.

As I said, it is very positive if the coin can bounce up from here, but of course there is always a chance that the coin falls through this zone. If the latter happens, there are few support levels that can stop the price. This could cause a significant and rapid decline, but no one knows yet where it will end.

However, this is not necessarily very negative for the longer term, as the currency is still in an upward trend. The important thing is that the coin does not fall past its previous low. So there is a lot of risk associated with this currency, but also a lot of opportunity. Therefore, keep a close eye on these price levels and the exchange rate.

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