Shiba Inu (SHIB) has been displaying a bearish structure accompanied by a noticeable capital outflow, leading to a plunge in its value. Despite the prevailing technical indicators, there is a lingering possibility of a short-term range formation.
At present, the critical resistance on the charts is identified at $0.000007. Notably, this level experienced a brief shift to support earlier in the week, but the bullish momentum was ultimately unable to sustain its grip.
As of the latest update, the current SHIB price on CoinGecko hovers at $0.00000692, with a moderate 24-hour rally of 3.5% and a modest seven-day gain of 1.2%. The recent descent below the trendline support does not necessarily invalidate its strength.
Frequently observed in technical analysis, assets often retest critical support levels to confirm their resilience before any substantial directional shift. If SHIB can promptly reclaim its position above this trendline, it might signal the commencement of a potentially bullish phase.
Shiba Inu: Struggle For Support
Analyzing the four-hour chart, the market structure of SHIB took a bearish turn following the decline below the $0.00000693 mark, ultimately reaching the local lows of $0.00000673. Similar market movements were witnessed earlier this month, which led to the plotting of a set of Fibonacci levels.
Notably, the 61.8% and 78.6% levels failed to witness a successful H4 trading session closure above them, despite a brief spike to the $0.00000729 mark. In the last 12 hours, SHIB bulls have managed to put a temporary halt to the prevailing bearish momentum, thereby indicating a possibility of a bounce back towards the $0.000007 level.
SHIB has a market cap of $4.1 billion today. Chart: TradingView.com
Evaluating the moving averages, SHIB currently lies below both its short-term and long-term averages, historically indicating the presence of bearish momentum. However, considering the broader context, this positioning could potentially signify a consolidation phase, setting the stage for an imminent reversal in its trajectory.
Potential Impact Of Current Market Trends On SHIB's Long-term Outlook
The recent market trends have raised concerns regarding SHIB's long-term trajectory, with the bearish structure and substantial capital outflow posing significant challenges for the cryptocurrency.
However, market analysts continue to highlight the potential for a short-term range formation despite the persisting technical indicators. As the cryptocurrency grapples with critical resistance levels and the possibility of retesting support, investors remain cautiously optimistic about the potential for a bullish phase.
SHIB seven-day price action. Source: Coingecko
Notably, the recent drop below the trendline support has added to the uncertainty surrounding SHIB's near-term performance. However, technical analysis suggests that a quick reclaim of the position above this trendline could serve as a crucial indicator for a potential bullish phase.
The recent positioning of SHIB below both its short-term and long-term moving averages has raised concerns about the persistence of bearish momentum. However, experts underline the importance of considering the broader context, emphasizing the potential for a consolidation phase that could pave the way for a reversal in SHIB's market trajectory.
(This site's content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).
Featured image from BeChewy
Source: NewsBTC.com
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