- Shiba Inu price is hovering above two critical support levels – $0.00000654 and $0.00000625.
- A breakdown of these levels might push the altcoin to retest the range low at $0.00000518.
- However, if SHIB slices through the immediate resistance level at $0.00000811, it will invalidate the bearish thesis.
Shiba Inu price has been on a downswing since July 6 after a failed attempt to slice through the high probability reversal zone. This descent is now trading above two pivotal support barriers, a breakdown of which could lead to a steep correction.
Shiba Inu price awaits a trigger
Shiba Inu price has shed 33% since July 6 after failing to pass through the high probability reversal zone extending from $0.00000954 to $0.00001070. A decisive close above $0.00001070 would have increased the chances of an upswing.
However, due to the lack of buying pressure, SHIB has dropped to retest the $0.00000654 and $0.00000625 demand barriers.
If this bearish trend continues, the said levels will likely shatter, opening the path for a further downtrend. The support level at $0.00000516, coinciding with the range low, will be the bulls’ first target.
If the sellers produce a decisive 6-hour candlestick close below this barrier, an 18% sell-off might ensue. In total, this move would constitute a 36% crash.
SHIB/USDT 6-hour chart
On the flip side, if the buyers come to the rescue and Shiba Inu price recovers from either $0.00000654 or $0.00000625, the upswing narrative will have a better chance than before.
To invalidate the bearish scenario, bulls need to rally 23% and flip the immediate swing high at $0.00000811 into a support level.
Such a move could attract sidelined investors to jump on the bandwagon, leading to a retest of the range’s midpoint at $0.00000870.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.