Shiba Inu Faces Selling Pressure as Traders Eye Key Support Levels for Potential Reversal

• Shiba Inu has recently been under significant selling pressure, losing various key support levels.
• Market participants are advised to closely monitor the $0.0000128 support level for potential price movements.
• Despite the prevailing sell-off, there are suggestions of a possible short-term recovery for SHIB.

Get updated on the latest developments in Shiba Inu’s market performance and potential price reversals.

Shiba Inu’s Struggle Against Selling Pressure

Shiba Inu (SHIB), a popular altcoin, has been grappling with strong selling pressure as market volatility persists. With SHIB currently trading at $0.0000133, down by nearly 2.8% in the last 24 hours, traders are scrutinizing the coin’s performance. The consistent downtrend has kept SHIB below its key Exponential Moving Averages (EMAs), signaling a bearish market sentiment.

Technical Indicators Signal Bearish Trend

SHIB’s price movement remains confined within a descending channel, reflecting ongoing bearish momentum. The 20-day EMA stands at $0.0000144, the 50-day EMA at $0.0000161, and the 200-day EMA at $0.0000193—all oriented downwards. Meanwhile, the Moving Average Convergence Divergence (MACD) indicates flat momentum, with both the MACD line and the Signal line hovering just below the zero line. This stagnation suggests that while bearish momentum has slowed, a clear bullish reversal is yet to be seen.

Critical Levels and Market Sentiments

The immediate key level for SHIB is the $0.0000128 support. A breach below this threshold could lead to further declines, potentially dropping to the next significant support at $0.0000089. Conversely, surpassing the 20-day EMA at $0.0000144 could ignite a short-term rally towards the $0.0000161 and $0.0000193 resistance levels. The Relative Strength Index (RSI) near the oversold region hints at a possible reversal, contingent on robust buying volumes.

Potential for Trend Reversal

Analyzing the overall long/short ratio, which stands at 0.9535, reveals a slight bearish bias among traders. However, the SHIB/USDT long/short ratio on Binance is at 2.6364, indicating that a notable section of the market is anticipating a price rebound. Investors should remain vigilant of broader market dynamics and significant news that could influence SHIB’s price in the near term.

Conclusion

While Shiba Inu remains under substantial selling pressure, the possibility of a short-term recovery exists, provided it can break through critical resistance levels. Investors are advised to track key support levels and market indicators closely to navigate this volatile landscape effectively. As always, staying informed and cautious is key to making sound investment decisions.