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The last few days have been the worst for Shiba Inu (SHIB). After a series of large-scale liquidations of long positions, the price of the popular meme-inspired cryptocurrency failed to return to the key support level around $0.0000283 per SHIB, and after fixing below this mark first by a daily and then by a weekly candlestick, it continued to fall in today’s trading session.
Now Shiba Inu token enthusiasts and crypto market participants in general are wondering — where must the SHIB price fall in order for this pain to end?
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So far, few can predict the exact answer which, given the volatility and unpredictability of the crypto market, is rather thankless, and more accurately suited to the word “ruin,” some tools can give at least an approximate guide.
One such indicator is, for example, the Bollinger Bands, was developed by John Bollinger — an expert trader from traditional financial markets — many years ago and widely used for predicting the prices of financial assets. The tool is a moving average and two bands that are standard deviations from it, one down and one up.
Now the price of Shiba Inu token is located under the moving average, which means that it is gravitating toward the lower band, which on the daily chart is at $0.00002438 per SHIB, which is almost 10% below the current mark.
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Despite the fact that deviations within this zone are possible, we can assume that in this area the price of the Shiba Inu token will find its local bottom. Or, in any case, the investment decision regarding the meme cryptocurrency will be made more consciously.
The scenario of the Shiba Inu token falling to the lower Bollinger Band will be canceled by a return above the moving average, i.e., growth of more than 6.6% from the current mark.
Source: https://u.today/bollinger-bands-identify-next-important-stop-for-shiba-inu-shib