Starting the month indecisive, Shiba Inu resumed bearish last weekend and slipped near last December’s low. It recovered slightly above it and now looks prime for more sell actions. So far, it has lost 20% in a week.
This week, Shiba tested the exact expected price level of $0.00000837 after experiencing a series of drops in the past three months. It saw a sudden rejection at that level and remained calmly stable around $0.000009 for two days.
It has shown signs of weakness today, with a 2% drop. An extension of these drops may lead to a more downward spiral. Last December’s low remains a key breakdown level for a bearish continuation.
Should that level hold tightly and continue to suppress selling pressure for the next couple of days, Shiba could reverse the trend and start to regain momentum.
Howbeit, that mentioned low is a key demand area where the buyers are looking for an entry. If they eventually succeed, they may have to surpass a small obstacle – the descending resistance line forming on a daily. More so, we should expect multiple rejections around this area even if the sellers later happen to win the battle.
Looking at the current market structure, the asset has stylishly washed off its early-year gains as the price fell back to a crucial support level. In the middle of the storm, Shiba Inu has not found a firm level for a bullish reversal.
SHIB Key Levels To Watch
All the supports that the price went through in the past months are now held as resistance levels. If Shib dips below the current holding level, the support to consider next is the last December low of $0.0000078. A breakdown from here could target the $0.000007 level.
In case of a reversal, the resistance levels for the test are $0.00000936, $0.0000105 and $0.0000117.
Key Resistance Levels: $0.00000936, $0.0000105, $0.0000117
Key Support Levels: $0.00000837, $0.0000078, $0.000007
- Spot Price: $0.0000088
- Trend: Bearish
- Volatility: Moderate
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
Image Source: kviztln/123RF
Source: https://nulltx.com/shiba-inu-price-analysis-prediction-may-11th-shibs-early-year-gains-wash-off-in-three-months-back-to-previous-low/