See More

Shiba Inu (SHIB) Approaches Support After 50% Drop

2 mins
Updated by Kyle Baird
Join our Trading Community on Telegram

In Brief

  • SHIB has broken down from a symmetrical triangle.
  • There is horizontal and diagonal support at $0.00003500.
  • It's possibly trading inside a descending parallel channel.
  • promo

After decreasing by 50% since its all-time high, Shiba Inu (SHIB) has reached the first potential bounce area and is just above a confluence of support levels.

SHIB has been decreasing since Oct 28, when it reached a high of $0.00008854. So far, it has reached a low of $0.00004312 on Nov 4. This amounted to a downward move of 52%. 

The high was reached inside an area suitable for a local top. The high was made between the 1.61 external Fib retracement level (white) when measuring the downward movement in May, and the 4.618 level when measuring the drop in October (black). 

Furthermore, it was combined with a bearish divergence in the RSI. This occurs when the price creates a higher high but the indicator creates a lower high. The RSI is a momentum indicator, and this reading suggests that the increase in price was not accompanied by an increase in momentum. 

The closest support area is found at $0.00003500. This is the previous all-time high region, which also acted as resistance at the beginning of October. Now, it is expected to act as support.

Where will SHIB find support?

Cryptocurrency trader @IncomeSharks tweeted a SHIB chart, stating that the token has been decreasing and is close to breaking down.

The six-hour chart shows that SHIB has broken down from a symmetrical triangle. 

In addition to this, it shows that the $0.00003500 support area is extremely significant, due to a confluence of factors. 

Besides being a horizontal area, it also coincides with an ascending support line and is the 0.786 Fib retracement support level. Therefore, if SHIB gets there, it would be very likely to bounce.

Future movement

A closer look reveals that SHIB is potentially trading inside a descending parallel channel. If so, it has just bounced at its support line. 

Furthermore, it’s possible that the decrease is a three-wave A-B-C structure. In this case, waves A:C have an exact 1:1 ratio, which is common.

Therefore, it’s possible that SHIB will reverse at the current levels instead of dropping all the way to $0.00003500. In any case, a considerable bounce is likely to transpire soon.

For BeInCrypto’s latest Bitcoin (BTC) analysis, click here.

Top crypto projects in the US | June 2024

Trusted

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

Valdrin-Tahiri.jpg
Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst. (I do not have a discord and will not contact you first there. Beware of scammers)
READ FULL BIO
Sponsored
Sponsored