• Shiba Inu price shows a breakdown of the inclined trend line and the immediate support level at $0.0000118.
  • This trend reversal could see SHIB drop 25% to $0.0000083.
  • A daily candlestick close above $0.0000118 will invalidate the bearish outlook.

Shiba Inu price has been waiting to find a perfect support level for months after its recent explosive move. Despite undoing the gains of the last rally, SHIB has not reached a stable foothold. However, things are looking up as the meme coin prepares for a volatile move.

Shiba Inu price ready for a quick descent

Shiba Inu price has been hovering above the $0.0000118 support level for more than a month. After it flipped this level on August 5, it consolidated above it for some time before triggering a 50% rally. 

Although the Shiba Inu price undid these gains in the next few days, it traded above the inclined trend line and a horizontal support level at $0.0000118. However, on September 15, SHIB breached this confluence, confirming the start of a downtrend. 

If this trend continues, Shiba Inu price will likely crash 25% and fill the inefficiency, extending from $0.0000083 to $0.0000093. This move, from a short-term perspective, could seem bearish but it will set a base for the long-term bullish play.

For more details on how this drop factors into the larger outlook check this article out.

This support level promises a 120% recovery rally for Shiba Inu price

SHIB/USDT 4-hour chart

SHIB/USDT 4-hour chart

However, if Shiba Inu price takes a U-turn and produces a daily candlestick close above the $0.0000118 barrier, it will denote weakness among the bears. If this hurdle is flipped into a support floor, it will invalidate the bearish outlook. This development could see Shiba Inu price prematurely trigger the run-up to $0.0000179.

Note:

This video explains the short-term and long-term outlook for Shiba Inu and how you can position yourself accordingly.

 


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.

Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Ethereum price recovers slightly as whales begin accumulation spree

Ethereum price recovers slightly as whales begin accumulation spree

Ethereum showed signs of recovering its bullish momentum on Thursday, briefly rising to $3,618 as whales entered a buying spree. Despite the movement from whales, the US Securities and Exchange Commission Wells notice to Uniswap could affect Ethereum in the long run.

More Ethereum News

Solana borrowing and lending platform MarginFi sees massive withdrawal after CEO resignation

Solana borrowing and lending platform MarginFi sees massive withdrawal after CEO resignation

MarginFi saw more than $260 million leave its platform into other competing Solana platforms on Thursday. This follows controversial accusations from staking protocol SolBlaze and CEO Edgar Pavlovsky's resignation.

More Solana News

Doge contributor warns of extreme volatility amid Coinbase listing of DOGE and PEPE futures products

Doge contributor warns of extreme volatility amid Coinbase listing of DOGE and PEPE futures products

A Dogecoin contributor warned the DOGE community on Thursday to desist from derivatives trading due to the high volatility that may occur as the Bitcoin halving approaches. The warning comes as Coinbase is set to begin trading the Dogecoin futures contract after gaining approval from the CFTC.

More Dogecoin News

SEC quietly investigated and closed case against altcoin FLOW founder Dapper Labs in September

SEC quietly investigated and closed case against altcoin FLOW founder Dapper Labs in September

Flow cryptocurrency received attention on Monday after Fortune obtained a document revealing the Securities & Exchange Commission closed an investigation on its founding company, Dapper Labs, which is also responsible for developing NBA Top Shot and Crypto Kitties NFTs.

More Cryptocurrencies News

Bitcoin: Short-term holders add 1.12 million BTC, what does this mean?

Bitcoin: Short-term holders add 1.12 million BTC, what does this mean?

Bitcoin (BTC) price action for the past three weeks has been confusing for sidelined participants. On the one hand, investors are ignoring BTC and trading altcoins, and on the other hand, traders are expecting a potential dip.

Read full analysis

BTC

ETH

XRP