Thursday, January 20, 2022
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By Nancy Lubale
Published 1 hour ago Updated 1 hour ago

Shina Inu price is down 8.95% in the past 24 hours to trade at $0.000030. Shiba Inu market capitalisation has decreased by 9.16% to $16.370 billion flowing the Wednesday crypto market bloodbath. The increased activity in the SHIB price correction is accentuated by increased daily trading volume which has increased a massive 118% in the past 24 hours to $1,411,986,223 according to data from CoinMarketCap.

If the current price correction lingers, SHIB is set to dip even further if bulls fail to hold on to reclaim the $0.00003026 support level.

Shiba Inu Price Correction Targets $0.00002813

Shiba Inu (SHIB) price action has formed a descending parallel channel on the 12*hour chart. Note that this is a significantly bearish chart pattern that was formed as SHIB recorded a series of lower highs and lower lows.

Shiba Inu price has made several attempts to slice through the upper boundary of the descending channel with no avail. The first attempt was on December 28 when the SHIB Army attempted to reverse the sluggish performance. The other attempts were made during all the 12-hour trading sessions between January 02 and today.

However, selling pressure continued to mount as SHIB slides below the middle boundary of the governing chart pattern.

A failure to reclaim the aforementioned support at $0.00003026 could see SHIB slide to tag the December 20 low at $0.00002893. A drop further could see Shiba Inu price drop to reach the target of the governing chart pattern at $0.00002813 embraced by the lower boundary of the channel. Such a drop would represent a 6.15% drop from the current price.

SHIB/USD 12-Hour Chart

Shiba Inu Price

Note that the pessimistic outlook for SHIB has been reinforced by the downward movement of the Movign Average Convergence Divergence (MACD) indicator which shows that the current market momentum for Shiba Inu is bearish. Moreover, the position of the MACD below the zero line validates the bearish narrative.

Also note that the MACD sent a call to sell SHIB signal on December 28 on the 12-hour chart and the yesterday on the daily chart as the 12-period exponential moving average (EMA) crossed below the 26-day SMA. This is suggestion that the market sentiment for SHIB and indeed the entire crypto and financial markets is negative.

Moreover, the entry of the RSI into the oversold zone is an indication that the bears are fully in control of the Shiba Inu price.

Looking Over The Fence

However, if the SHIB Army reorganizes itself and commits to reverse the correction, the meme coin could rise to tag the December 21 low at $0.00003108. A rise further could see SHIB retest $0.00003262 resistance level. Beyond this level the upper boundary of the prevailing chart pattern at $0.00003236 would be the next logical move.

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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.
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