- Shiba Inu price is approaching a critical line of defense that might determine the fate of the token.
- SHIB is at risk of a steep decline, given the prevailing bearish bias of the chart pattern it has presented.
- The canine-themed token could expect a 50% decline if it fails to hold $0.00000550.
Shiba Inu price is nearing critical support that would dictate the fate for SHIB. Despite the dog-themed token’s attempt to break above crucial resistance, the coin failed to hold onto support, opening up the risk of a steep decline.
Shiba Inu price appears to be headed for a plunge
Shiba Inu price has been building a descending triangle pattern on the 12-hour chart, presenting a bearish outlook. Although SHIB has been able to slice above the hypotenuse of the chart pattern on June 29, the canine-themed token appears to be headed for a sharp drop.
SHIB broke below both the declining trend line as well as the horizontal base of the triangle on July 19, painting a bearish bias for Shiba Inu price.
The measured move of the prevailing chart pattern suggests that Shiba Inu price could drop 50%. This is calculated by measuring the height of the triangle and subtracting it from the base of the triangle, projecting a steep decline to $0.00000322.
SHIB/USDT 12-hour chart
The 161.8% Fibonacci retracement level further adds credence to the bearish bias, which coincides with the aforementioned bearish target.
While this massive fall to the downside remains a possibility for Shiba Inu price, only if SHIB plunges below the lower boundary of the demand zone at $0.00000550 due to a spike in selling pressure should this target be on the radar.
Currently, the June 12 low at $0.00000550 acts as meaningful support for Shiba Inu price. Should the bulls manage to incentivize SHIB for a recovery, the dog-themed token could bounce off this level and tag the horizontal trend line corresponding to the 78.6% Fibonacci retracement level at $0.00000652.
Further bullish momentum could see Shiba Inu attempt to tag the 61.8% Fibonacci retracement level, before pushing further toward the 50% Fibonacci retracement that coincides with the 50 and 100 twelve-hour Simple Moving Average (SMA). Investors should note that this area acts as stiff resistance for SHIB, and targets beyond this level would not be anticipated in the short term.