Shiba Inu price undergoes rejection, which could be a signal of things to come
|- Shiba Inu undergoes a big fade and is looking for support.
- SHIB price could drop another leg lower – potentially of around 10%.
- The risk is that SHIB price tanks to below $0.00001000, losing 28% of its value.
Shiba Inu (SHIB) price has undergone a big fade since Thursday evening after it got rejected against the monthly R2 at around $0.00001500. Since then, price action has been paring back incurred gains. It is now set to drop another leg lower as the monthly R1 resistance level looks like it will fail to provide support at the current price level. In a best case scenario, the pivotal level at $0.00001209 holds; in the worst case a dire price collapse of 28% unfolds.
SHIB price could implode if bulls are not willing to help out
Shiba Inu price is not painting a rosy picture this morning as it erases almost all the built up gains from Thursday. The risk now is that price action will tank another leg lower towards $0.00001209, since the monthly R1 pivot does not hold great historical relevance and has been chopped up quite often these past few days. Another leg lower would mean price hits roughly $0.00001209, with the 55-day Simple Moving Average (SMA) coming in to lend a hand.
SHIB price could also be facing a worst-case scenario if price action slices through the previously mentioned $0.00001209 level should bulls not be there or offer enough appetite to buy at that level. That would mean a big systemic risk as SHIB price then enters a region with a lot of downside potential and few intermediary elements to slow down the fall. Shiba Inu price could easily fall below $0.00001000 and hit $0.00000965, just below the monthly S1, which would mean a loss of 28% from where SHIB price is currently trading.
SHIB/USD Daily chart
The monthly R1 resistance will probably not provide support, but the pivotal level at $0.00001209 probably could – especially given the 55-day SMA holds some relevance and could push price action back north. An alternative bullish scenario could be that price rebounds from the MA, with a break above $0.00001500 first up, before SHIB price hits $0.00001708 and prints 27% of gains in the process.
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