Shiba Inu (SHIB), a prominent meme token in the cryptocurrency market, is currently encountering a critical support level. A recent analysis suggests that while Shiba Inu’s consolidation phase might show signs of recovery, the general price outlook still appears to favor sellers. This could potentially lead to more downward movement for SHIB in the near future.
Can SHIB Recover?
For a potential recovery, maintaining the $0.0000017 support level is paramount. However, the bearish trend of Bitcoin (BTC) has weakened the bullish sentiment for SHIB, adversely affecting the overall market atmosphere. Additionally, the Relative Strength Index (RSI) on the daily chart has dropped below 30, signaling a strong bearish trend. The Chaikin Money Flow (CMF) at -0.14 further highlights substantial capital outflows, making a recovery more challenging.
What Are the Critical Levels?
Shiba Inu’s price has slipped below its ten-week range, particularly around the $0.00002 mark. Within this range, the 78.6% Fibonacci retracement level at $0.0000172 is under considerable seller pressure. A daily close below this threshold could indicate a decline toward the 100% retracement level, making the price prediction for SHIB more bearish and pushing it towards the psychological support level of $0.00001.
Key Insights for Investors
Investors should note the following:
- Monitoring the $0.0000017 support level is crucial for potential recovery.
- A close below $0.0000172 could lead to further declines.
- Bearish indicators like RSI and CMF suggest continued downward pressure.
- Watch for liquidity pockets around $0.00003 for potential trend reversals.
In conclusion, Shiba Inu’s future price movement remains uncertain due to strong bearish momentum and significant capital outflows. Continuous monitoring of critical support levels and market trends will be essential for investors navigating this volatile environment.