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Shiba Inu price could crash to December 2022 lows if it loses this level

  • Shiba Inu price declined by nearly 12% in the last seven days to trade at the $0.00001100 area.
  • SHIB is looking at another 12.5% crash if the selling continues.
  • If the altcoin ends up being oversold, it could recover slightly before hitting the December 2022 lows.

Shiba Inu price noted a consistent downtrend throughout the month of February, which has not ended a week into March. The cryptocurrency is looking at a few more trading sessions, which could close in red, although if broader market cues turn positive, SHIB might not decline to extreme lows.

Shiba Inu price to fall further

Shiba Inu price, at the time of writing, is trading at $0.00001102 after declining by almost 12% in the last week. The altcoin flipped its support level at $0.00001189 into critical resistance and is now inching closer to losing the support of $0.00001000.

The Relative Strength Index (RSI) lost the support of the neutral line at 50.0 and is falling quickly, sitting in the bearish zone. A similar bearish outlook can be noted on the Moving Average Convergence Divergence (MACD) indicator, which has not witnessed a bullish crossover for about a month now.

Shiba Inu MACD and RSI

Shiba Inu MACD and RSI

If Shiba Inu price adheres to these conditions, it could decline further and end up testing the critical support at $0.00000966. Losing this support would result in bears dominating the price momentum, resulting in a potential 26% crash to the December 2022 low of $0.00000791.

However, as observed on the RSI, excessive bearishness would result in higher selling pushing the indicator into the oversold zone, below the 30.0 mark. This zone is usually indicative of a trend reversal incoming or at least a minor hike to correct the price decline. Bulls would have the opportunity to pull SHIB out around this time. 

SHIB/USD 1-day chart

SHIB/USD 1-day chart

However, the altcoin would need to not only flip the critical resistance at $0.00001189 into support but also tag the resistance at $0.00001395 to initiate some sustainable recovery. This would invalidate the bearish thesis and enable SHIB to climb back above the year-to-date high of $0.00001472.

Author

Aaryamann Shrivastava

Aaryamann Shrivastava is a Cryptocurrency journalist and market analyst with over 1,000 articles under his name. Graduated with an Honours in Journalism, he has been part of the crypto industry for more than a year now.

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