Shiba Inu (SHIB) trades close to its crucial support

Despite the market capitalization trending close to $5 billion valuations, the token has been a subjective candidate of frequent ups and downs in the crypto realm. While there have been instances where the Shiba Inu token took huge gains in a short margin, such gains were quickly lost in equally drastic sell-offs.

Shiba Inu now maintains its position at the 15th spot falling behind the likes of Solana and TRON. The Shiba Inu blockchain currently operates as an ERC-20 token and now presents three different options of token SHIB, Bone, and Leash.

SHIB is the neutral cryptocurrency of the Shiba Inu blockchain meant for trading and exchange. While Leash is another limited variant token that provides staking rewards to users who have pooled their token holdings for the ShibaSwap.

At the same time, Bone is used for governance of its blockchain and voting purposes. Other aspects of this blockchain include SHIBOSHIS and the community-driven decentralized exchange platform ShibaSwap. The promoters and enthusiasts of this token are popularly called SHIB Army.

Commenting on the price analysis for investment or holding purposes, Shiba Inu remains one of the top-ranking cryptocurrency networks capable of being used for multiple purposes other than exchange medium.

Unlike BTC, the blockchain is far more sophisticated and allows holders to decide the course of action for this blockchain. The price decline witnessed since failing to breach the 200 EMA curve in October and November just highlights the overall weakness in this token.

Since the moving average itself is on a decline, the performance of this token in the long term has been negative, while the outlook has remained the same. Read our SHIB coin price prediction to know a more detailed analysis for the next few years!

Support has been witnessed near the 0.000008 BUSD level since the crash of May 2022. While RSI has been trading close to oversold zones, it indicates a declining buying interest.

While MACD is showcasing a probable bullish crossover in the coming days that could allow the price to stabilize and move above the key moving averages; however, there is a tremendous gap between the recent rejection and the currently traded value. 

On weekly charts, the grim nature of Shiba Inu can be confirmed as the weekly decline since the spike rally of September has reached its origins. The support levels are being consistently challenged, indicating a possibility of breakdown to continue.

At such a time, the chief developer of Shiba Inu, Shytoshi Kusama, tweeted Woof to rally the enthusiasts. The outcome for Shiba Inu based on price action showcases the need to average out for those considering a strong uptrend in this token.

On the contrary, those looking at this coin from an opportunity perspective should probably wait for a breakout from 100 EMA before making a fresh entry to avoid getting trapped in tricky situations.