Shiba Inu Price Battles Support Levels With Bulls Eyeing a 400% Surge

Shiba Inu (SHIB) price is under pressure in the market as bearish trends have taken over the meme coin. Over the past month, SHIB price has remained bearish, reflecting the overall downtrend in the market. However, the token failed to sustain a consistent uptrend owing to selling pressure as shown by other technical factors.

Nevertheless, some analysts remain optimistic, suggesting that a bullish pattern may be forming. If key support levels hold, SHIB price could see a 400% rally, indicating a potential recovery from oversold conditions.

Shiba Inu Price Drops, Analysts Spot Signs of a Possible Reversal

In the past month, as per analysis, Shiba Inu price has declined by 29%, similar to the decline in the crypto market. At the time of writing, SHIB price is $0.00001476, with its market capitalization at $8.7 billion. However, there is a bearish outlook for SHIB in the general market recording a 9% decline in the last 24 hours.

Recent data shows that transactions of above 1000 SHIB across the Shiba Inu network have reduced by over 80% in the last 12 weeks. This indicates a lack of trust among major investors.

On the other hand, analysts have recognized the signs of the formation of an Inverse Head & Shoulders formation. This might suggest that the movement of the meme coin price is going to reverse in the near future. If so, SHIB could go up by 400% and its value could reach $0.000081.

However, experts caution that such projections must be interpreted carefully, given the overall uncertainty in the meme coin market.

More so, the latest burn activity has fueled optimism among traders anticipating a 300% meme coin rally. A 120.3% increase in the weekly burn rate suggests reduced supply, which could drive demand higher. If momentum sustains, Shiba Inu price may attempt a breakout.

Technical Indicators Suggest Bearish Momentum

Shiba Inu price drop coincides with an 80% decline in large whale transactions over the past 12 weeks. This sharp decrease in whale participation is a sign of declining confidence in Shiba Inu, which could further contribute to short-term market instability. As the crypto market faces broader bearish trends, SHIB’s ability to maintain its levels at critical support levels is crucial for its recovery.

From a technical perspective, the Bollinger Bands have widened, signaling increased volatility in SHIB price action. The price is currently below the middle band, which typically suggests a bearish market momentum. 

Additionally, the MACD indicator remains in negative territory, with the MACD line positioned below the signal line, reinforcing the downward trend. The histogram also shows a continued decline in bullish momentum. These indicators point to the continued pressure on SHIB price, although the lower Bollinger Band could support buying recovery.

Meme Coin Must Defend $0.000011 Support

The price of Shiba Inu faces a critical test as it approaches essential support levels. The primary support level at $0.000011 has become a key threshold for SHIB’s short-term future. A break below this support could lead to a further decline in the meme coin price.

Conversely, if SHIB can hold above this support level, there may be an opportunity for the bulls to re-enter, and a reversal could be possible.

With the broader market facing bearish pressure, SHIB’s ability to stabilize and defend key levels will determine whether the top meme coin can rebound or face further losses. 

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Ronny Mugendi

Ronny Mugendi is a seasoned crypto journalist with four years of professional experience, having contributed significantly to various media outlets on cryptocurrency trends and technologies. With over 4000 published articles across various media outlets, he aims to inform, educate and introduce more people to the Blockchain and DeFi world. Outside of his journalism career, Ronny enjoys the thrill of bike riding, exploring new trails and landscapes.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.