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Shiba Inu (SHIB) Successfully Bounces off Support Level, Here Are Next Steps

Mon, 08/29/2022 - 10:26
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Arman Shirinyan
Meme token passed first test on its way up
Shiba Inu (SHIB) Successfully Bounces off Support Level, Here Are Next Steps
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According to the daily chart of Shiba Inu, the token has successfully bounced off the local support level, but due to a lack of momentum, the growth remains insignificant.

Trendline support

At press time, Shiba Inu is moving on the trendline support formed back in July. The line remains the last support for the token as the 50-day exponential and regular moving average could not hold under the large selling pressure that is coming from whales.

Shib Chart

If we ignore the unexpectedly large price increase on Aug. 15, SHIB has remained in the ascending price range since the end of June and continuously moved within it. If the range holds the existing selling pressure, SHIB will maintain current gains and move further up.

Volume profiles suggest that the token is not receiving any support from large retail or institutional investors, which is one of the main reasons behind the anemic performance. With Bitcoin plunging below $20,000, we are once again seeing an outflow of funds.

What's next for Shiba Inu?

For now, Shiba Inu desperately needs some buying support from investors, as the token will most likely break down if it remains in the range any longer. Every test of the local support level is dangerous, as an unsuccessful bounce attempt will lead to a potential plunge below $0.00001.

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As we saw from the most recent 40% price spike, Shiba Inu does not need gigantic inflows of funds to make a big return on the market. Even the slightest buying activity that might come from whales will lead to strong growth.

At press time, Shiba Inu is trading at $0.000012 and gaining around 2% to its value in the last 24 hours.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.

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