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Shiba Inu is certainly struggling to recover properly as the asset's struggle on the market continues. At around $0.00001575, SHIB is clearly moving in a downtrend, forming lower high after lower high and not showing any upside momentum.
With several unsuccessful attempts to break above significant resistance levels, SHIB's price action points to a continuation of the bearish trend. The 200-day EMA (black), 100-day EMA (orange) and 50-day EMA (blue) are all above the current price, confirming the downward trend and showing significant resistance.
The lower high formation, which indicates that each relief rally is weaker than the one before it, is a significant factor driving this trend. Since this pattern is usually linked to ongoing selling pressure, SHIB finds it challenging to mount a strong recovery. It is becoming more likely that SHIB will break below $0.00001500 and add another zero to its price as it continues to decline.
Arman ShirinyanThe next important zone to keep an eye on is $0.00001400, which is followed by $0.00001300 if the asset is unable to maintain this important support level. If these levels are broken, SHIB may enter a protracted bearish phase. Alternatively, SHIB would have to break above the descending EMAs and invalidate the downtrend structure in order to reclaim at least the $0.00001800-$0.00002000 range in order for a bullish reversal to occur.
However, such a move does not seem likely in the near future due to the weak volume and lack of buying pressure. There is still a lot of selling pressure on SHIB, and more drops could occur unless the market improves. Investors should keep a careful eye on the $0.00001500 level because a clear break below it could hasten the decline.
Unfortunately, the likeliness of such move is quite low. Shiba Inu is being provided with a lot of selling pressure, and there is not much that local bulls can do about it. There are key levels to keep an eye on, like $0.00001500, but even these might be broken after a little more pressure occurs on the market.
Caution is still the best course of action for anyone wishing to enter or hold SHIB positions, as there are no obvious indications of a reversal. The current trajectory of SHIB indicates that bears are still in control in the absence of strong catalysts, and if the decline continues, the asset may be in danger of adding another zero.
Alex Dovbnya
Dan Burgin
Vladislav Sopov