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Shiba Inu (SHIB) just erased its bullish road map overnight. SHIB had been flirting with a breakout for most of January, but yesterday, the meme coin lost its support and closed decisively below the 20-day moving average. That is the kind of threshold that has been crucial to the whole bullish thesis, as evident by the TradingView chart.
With that level out of the picture, the setup has gone from a potential continuation to a likely correction.
The Bollinger Band midline is at the heart of the action. The Shiba Inu coin had been orbiting that support zone since its $0.00000965 peak on Jan. 4, which came right after a golden cross between the 23- and 50-day moving averages. But instead of going up, the price stopped moving.
SHIB is currently trading at $0.00000839 with the prime target, which is the lower band, at $0.00000718. That is a 14.36% gap, and usually this kind of pattern closes it unless there is a quick recovery, which there has been no sign of so far.
Bull case is not dead for SHIB
What looked like a classic bullish setup now looks like a failed breakout morphing into a mechanical reversion. The 20-day average has gone from being a floor to being a ceiling.
If SHIB does not get back on track within the next two days, it might start drifting downward to $0.00000718.
The bull case is not dead, but it has been pushed back. Instead of chasing upside extensions, SHIB now has to fight for survival inside its own volatility range.
The lower bound is the main focus right now, and unless something changes quickly, that is where the chart is pointing.
Gamza Khanzadaev
Alex Dovbnya
Arman Shirinyan