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SHIB holders beware! Shiba Inu price threatens a 23% drop

  • Shiba Inu price failed to breach the $0.0000130 resistance barrier multiple times over the last three months.
  • The resulting downswing suggests that SHIB is likely to head south, hinting at a 23% crash.
  • A daily candlestick close above $0.0000121 will invalidate the bearish outlook.

Shiba Inu price seems to be stuck between two significant barriers, resulting in a long and drawn-out consolidation. The recent attempt to move past the range high failed, leading to a retracement.

However, bears seem to have more to give and suggest the possibility of a steep correction for SHIB.

Shiba Inu price needs to drown

Shiba Inu price tagged the $0.0000130 hurdle thrice over the last three months. The latest attempt was on July 20, where SHIB rallied 34% to retest the aforementioned level. Regardless, the momentum was weak and in the end bears triumphed and pushed SHIB price back down.

A 21% pullback ensued to take SHIB price to where it currently trades at $0.0000103. With the FOMC meeting around the corner, things could get ugly before being bearable. Hence, investors need to be careful trading the volatile markets.

For now, the $0.0000095 support level is the only stable barrier that protects SHIB holders against bears. A breakdown of this foothold will result in a swift move to $0.0000082 due to the presence of the price inefficiency known as the fair value gap. 

In total, this move could constitute a 23% downswing and is likely where a local bottom could form for Shiba Inu price.

SHIB/USDT 1-day chart

SHIB/USDT 1-day chart

On the other hand, if Shiba Inu price produces a daily candlestick close above the $0.0000121 level, it will produce a higher high and invalidate the bearish thesis. In such a case, SHIB could trigger a rally to the next meaningful resistance level at $0.0000139.

Author

Akash Girimath

Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.

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