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The main reason behind the thesis you see in the title is the fact that Shiba Inu is actually very close to dropping below the 100 EMA, which will likely lead to a move toward the 200 EMA, which is 15% down from the current price level.
The price is perilously close to the pivotal 100-day Exponential Moving Average (EMA), a significant level of support that has historically offered stability. SHIB could be in trouble if it falls below this level and moves closer to the 200 EMA, which is about 15% below the current price.
Shiba Inu's price has been declining over the previous few weeks, pushing some investors into selling the asset. Since the 50-day EMA is already above the price, there has been a bearish crossover that has strengthened the downward momentum. For now, the price is just on the edge, moving below and above the level in a matter of hours.
A lack of significant buying interest is also indicated by volume trends. The volume has been declining recently during price reductions, which implies that fewer buyers are stepping in to support the price, leaving it more vulnerable to additional declines.
Arman ShirinyanFor those anticipating a swift recovery, this lack of demand is the worst thing imaginable. Another important metric to keep an eye on is the RSI. The RSI is currently close to the lower end of the range, suggesting that SHIB is getting close to the oversold area.
A surge of selling pressure may push the price of Shiba Inu down to the 200 EMA if it falls below the 100 EMA. This action would signify a substantial 15% drop from the current levels, which might frighten investors and result in more losses, especially considering that SHIB is coming closer to the edge of the $0.00002 threshold.
Dan Burgin
Alex Dovbnya