Shiba Inu was a relatively huge buzz in 2021 when buyers expected the meme coin cryptocurrency economy to take an upside movement. Rather than overtaking its closest rival, Dogecoin, Shiba Inu consolidated near DOGE for a short while before finally succumbing to the selling pressure of previous holders.
The market capitalization of SHIB has remained above $5 billion, saving it a spot amongst the top 20 cryptocurrencies even during the negative trending year of 2022. Shiba Inu’s launch price in August 2020 was a mere $0.0000000010, which helped holders make a 1000x return on their investment for a short duration before the price plummeted to new lows.
Shiba Inu’s price action has been inclined towards profit booking since attempting to break out from its upper band of $0.00001763 in August 2022. The outlook of SHIB in the short term remains negative, with major sell-offs possible in the coming days. For more details, you can always check out our Shiba Inu price prediction for the next few years!
Entire gains made since July are finally on the verge of collapse as the SHIB token is close to breaching its immediate support level of $0.0000956. Despite the negative outlook respecting support levels and consolidation offers a strong sense of buyers being in control. Once sellers take over an asset, the price action becomes untrustworthy with frequent volatility. Shiba Inu has another support level at the lower levels of $0.00000720.
SHIB has lost its significant valuation in October 2022, so far confirming a possible negative turnaround for the third consecutive month. Bouncebacks from the support level will probably be short-lived because of its emphasis on testing the resolve of new buyers.
RSI has already touched oversold zones over under 30, which might incite buyers to take advantage of current values, but considering the price action, a further decline from these levels is on the tables. The MACD indicator, on the other side, has already marked a bearish crossover confirming the overall negative sentiment is here to stay.
Weekly charts confirm the building of a negative trend since August 15, as each red candle followed by two green candles has a wick on both sides, confirming the failure of holders to take advantage of the prices. RSI on weekly charts is strong, showcasing level 40, but MACD is on its way to developing a similar pattern as seen on daily candlestick patterns.
Source: https://www.cryptonewsz.com/shiba-inu-close-to-vital-support-shib-decline-confirmed/