Has the Shiba Inu (SHIB) bubble burst? Recent price action in the downward direction seems to indicate that investors may be losing interest in the popular alternative to Dogecoin, although the cautious mood towards the overall crypto market may also be playing a significant role in dictating the moves.

At the time of writing, SHIB/USDT is trading around $0.00000671, down by over 7% in the past 24 hours. This is significantly lower than its ATH which had taken its market cap all the way up to over $13 billion last month, before the crypto market crash turned things around for SHIB and most of the other digital currencies.

Earlier this week, Shiba Inu did enjoy some support from news that its developers are planning to launch a new decentralized exchange (DEX) which will allow it to be traded against other digital assets and boost its liquidity and trading volumes. Officially, the DEX is still undergoing testing but the rumor among its social media community is that it is completely functional and will be released soon.

In addition, an ongoing petition online to get SHIB listed on Coinbase is gaining traction, nearing the 35,000 mark to become among the top signed petitions on Change.org. Following the popular crypto exchange’s decision to list Dogecoin last week, hopes are rising that Shiba Inu could also catch the platform’s attention soon.

Key Levels to Watch

The H4 chart of SHIB/USDT points to a bearish bias among the moving averages as well as leading technical indicators Momentum and MACD. The next level of interest sits at the support level at $0.0000061, and if this breaks down, the downtrend could strengthen further.

On the other hand, if the sentiment reverses, SHIB will have to make its way back up to the pivot at $0.0.00000890 for confirmation of a trend reversal and for the uptrend to pick up. Will the weekend volatility help this happen?