Shiba Inu is Again CoinMarketCap’s Most Watched Crypto as Price Holds Key Support, But There’s a Catch
Shiba Inu coin (SHIB) has shown some resilience in the cryptocurrency market over the last 24 hours. After strongly protecting the crucial support level at $0.000008, the price of SHIB has surged almost 5% and is currently trading around $0.0000082. This price movement has led to increased interest and discussions around SHIB, with the coin trending on CoinMarketCap as a hot topic.
Although the price of SHIB did briefly dip below the $0.000008 support level overnight on August 22nd, it swiftly rebounded back above it. This rapid recovery highlights how critical defending the $0.000008 support will be for SHIB over the next few days.
However, since the launch of Shibarium, SHIB has lost almost 20% of its value from its peak. It seems the downtrend may be ending as SHIB enters a consolidation phase after the rapid decline. SHIB hit its all-time high on August 12th, reaching $0.000011 before falling. The 200-day Moving Average indicator initially confirmed a bullish trend reversal, but this upside momentum was short-lived.
Currently, the price is retesting the $0.000008 breakout level. A pullback below $0.000008 could provide an attractive swing entry opportunity, with upside potential back to $0.000010.
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The short-term trend remains downtrend, medium-term is uptrend, and long-term is neutral.
MACD Line is below MACD Signal Line, and RSI is below 45. The MACD line crossing below the MACD signal line is a bearish signal showing downward momentum is accelerating.
The RSI (Relative Strength Index) is a momentum oscillator that measures the speed and change of price movements. It oscillates between 0 and 100. An RSI reading below 45 signals oversold conditions and that the price may be due for a bounce, but during strong downtrends the RSI can remain low for extended periods as downward momentum builds.
Together, these indicators signal that bearish momentum is intact and the downtrend is likely to continue, unless support levels hold. The indicators do not yet show signs of the momentum shifting for a trend reversal.
Key support levels to watch are $0.0000080 (previous resistance) and $0.0000055. Resistance is at $0.0000100, then $0.00001200. Monitoring these levels will be important for gauging SHIB’s next potential move.
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