Shiba Inu price hits critical support level

Shiba Inu, which came as a joke, is now soaring in the crypto ecosystem. The project has proved how a strong community helped the meme-coin grow. As the project garners notable attraction, more individuals are bullish on its roadmap. Following the recent market crash SHIB also reflected the overall market sentiment. SHIB price saw intense selling over the past few days. Still, the crypto was able to hit the zone where buyers could potentially be interested. 

What’s next for the Shiba Inu price?

Following the market sentiments, investors are concerned, whether SHIB will consolidate or will the previous downtrend continue again. To avoid excessive decimal places, the price of the asset has multiplied itself by 1000.

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According to the cyan box, we can witness a territory of demand. The price of Shiba Inu has already wicked into the zone on two occasions previously. Notably, last year in October, the $0.027 price level had acted as a supply zone for the tokens. Prior to the level, sellers were exhausted and buyers were able to drive the prices a further to around 200%.

Technicals of SHIB tokens

According to analysts, the Fibonacci retracement levels, that are based on such breakouts, have shown the 78.6% retracement level at the price of $0.037. However, the asset was not able to grip on such levels last month.

Besides, the more than 61% to 78% zone would be where investors should step in. However, the past few weeks did not witness sufficient demand to halt a decline. Following the price actions, analysts highlighted that although Shiba Inu saw a bounce, a close above the most recent high at $0.039 is necessary to break the bearish structure.

On the rationale side, we have observed indicators not showing the presence of bulls in the market yet. The A/D line has continued to plunge with the price confirming a downtrend. While noting the sentiments, we have observed that the Awesome Oscillator has been moving in the negative zone to show bearish signals.

According to the Bollinger bands width indicator, we noted that the indicator was close to where it was in late September. Analysts deemed that the indicators has signaled the possibility that Shiba Inu was in accumulation once more in an area of strong historic demand.

SHIB comprise more risk

A risk averse bull would need to wait until Shiba Inu price climbs back above $0.037 and flips it to support before another uptrend. On the other hand, a more risk-seeking investor would seek to scoop up some of the asset at current prices, but the trade requires to be more carefully managed as a daily close beneath the demand zone could witness a downtrend.