Analysis: Shiba Inu on the Brink of the Abyss?
Shiba Inu has been struggling to stay above $0.000017 for a few days now. This is an important price level that the coin should not fall below. There are few support points below this price. Let’s take a look at the charts.
How is SHIB doing?
We start this analysis with a look at the weekly chart. Here each candle represents 7 days, giving us a comprehensive view of the SHIB price. This makes the most important price level that influences this coin clear. This is shown as a red zone in the image below.
This price level, from around $0.000017 to around $0.0000185, has been important before. Since January 2022, it has provided both support and resistance several times, and at the moment it provides enough support to not fall below that 0.000017.
The coin came back up here after it started an upward trend. The old downward trend is shown by the blue arcs. And as you can see, a higher low and a higher high signaled a big upward movement.
We can still say that the coin is in an uptrend at this point – SHIB can make a nice higher low here – but the reactions to the red zone are becoming less and less. So it wouldn’t be strange if this ‘higher’ low is set a bit lower. To analyze this better, we need to zoom in a bit.
Less and less volatile
The best way to do this is to look at the daily chart of SHIB. Here each candle is for 24 hours, which gives us a better picture of the past price action. As you can see, the volatility decreases as it gets deeper into the red zone.
Usually, these periods of less volatility are followed by a strong move up or down. A reaction up, or a break at the bottom of this red zone can give the starting signal for this. So there is quite a bit of risk attached to this coin, but the fact remains that SHIB gave a nice reaction from this level last time. A higher low at this place would therefore not be crazy.
It is therefore a matter of waiting to see whether we can see a sign of recovery, because SHIB now only seems to want to go down. Keep a close eye on this price level and the price. Hopefully the coin can soon push itself into this red zone, but until then it seems better to watch this price development.
