Shiba Inu (SHIB/USD) on a Make-or-Break Level. Will Bulls Stand the Ground?
Cryptocurrencies had a rough week, with massive liquidations happening across the board. Looking at the 7-day trading, Bitcoin has shed more than 13%, while its closest competitor Ethereum is down at least 12%.
Shiba Inu (SHIB/USD), a coin that made supernormal returns for investors in October, is not an exception. At the time of writing, SHIB/USD was trading at 0.000044, a significant drop and halving from it’s all-time high of 0.00008886 on October 28. SHIB/USD has lost more than 17% on a seven-day horizon as the broader crypto rout continues.
Now, SHIB/USD looks unlikely to replicate the October gains in the short-term as the meme token, largely driven by influencer mentions and retail traders’ frenzy, seems to run out of gas. According to Coindesk, SHIB accounted for 6.72% of the Nasdaq-listed crypto exchange as of November 19. The activity is a drop from 16.6% in the preceding two weeks ending November 11. The memecoin Shiba Inu has also slipped to the third in terms of Coinbase’s volume rankings after topping in late October and early November.
A key question that Shiba fans have been asking is, will the meme token cut losses and reverse to the upside as pressure mounts for the listing of the meme-favorite token on Robinhood?
– A 4-Hour Technical Outlook
The 4-hour chart of SHIB/USD does not offer promising signs of a rebound. The chart shows that the meme token is under-pressure at a make-or-break level of 0.00004424. We consider 0.00004424 a make-or-break level as the level holds as established support which SHIB/USD broke before posting a strong bullish move on October 26. The meme token has also retested the level severally, which means that we should be watching it keenly for a potential breakout or rebound.
SHIB/USD is currently on a clear downtrend, and a descending triangle is visible where the trendline meets the support. Also, the token is currently held back by the 50-moving average (red) and 20-moving average (blue). Will SHIB/USD rebound?
SHIB/USD Trade Analysis and Idea
Predicting with certainty the direction of SHIB/USD in the next few days can be quite problematic as any potential rebound is held back by the bearish sentiment in the crypto industry. Nonetheless, we maintain a bearish view of SHIB/USD as long as it remains subdued below the descending trendline and moving averages.
If the current weakness in SHIB/USD continues, we project a breakout below the support that could open up further weakness, with a potential price drop to 0.000036 and established support at 0.00002797.
On the flip side, SHIB/USD would welcome a fresh bullish momentum if it sufficiently breaks above the descending trendline and descending triangle. This can happen if the broader crypto sentiment improves or fundamental development happens on the Shiba network. Given the two-sided SHIB/USD price moves, I will continue to monitor the 0.000044 level for a potential breakout. I will also monitor broader developments in the crypto industry and the Shiba Inu network for potential clues before trading the meme token. Good luck!
ABOUT THE AUTHOR
See More
Sidebar rates
Related Posts
Save
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals