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Is Shiba Inu (SHIB) Forming Dead Cat Bounce? Questionable Reversal

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Fri, 3/05/2024 - 11:03
Is Shiba Inu (SHIB) Forming Dead Cat Bounce? Questionable Reversal
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Shiba Inu is currently exhibiting signs of a weak reversal, also known as a dead cat bounce. Unfortunately, as things unfold, there is a good possibility of Shiba Inu simply losing steam and reversing downwards. One way or another, the market's state, in general, will be a decisive factor here. 

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In recent trading sessions, SHIB has shown some upward momentum from its lows, but this trend lacks the strength we saw in previous strong rallies. The volume accompanying these price changes has been notably low, indicating a lack of substantial buying interest. This scenario is often a red flag suggesting that the asset does not have enough backing at this point in time. 

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SHIB/USDT Chart by TradingView

Examining the chart, SHIB is trading near the $0.00002264 mark, struggling to break past the immediate resistance level at $0.00002384. This resistance level is crucial as it previously acted as both support and resistance, making it a significant price point for the asset. If SHIB manages to sustain a breakout above this level, it might target the next resistance near $0.00002447.

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However, the potential for a further decline cannot be ignored. SHIB is showing signs that the lows around $0.00002175 might not hold if selling pressure increases. Such a breakdown could see SHIB testing even lower supports, potentially around $0.00002000, a level crucial for the Shbia Inu's foreseeable future. 

The broader sentiment around Shiba Inu mirrors the general risk currently prevalent on the market. Investors are cautious, steering away from assets considered risky, especially meme coins like SHIB. The overall market demand for such assets is close to nonexistent.

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