Shiba Inu price looks south towards $0.0000060 as technicals favor SHIB bears

Amidst an underlying downbeat mood across the crypto market, Shiba Inu extends the bearish momentum into the third straight day on Sunday.

In doing so, SHIB price maintains this week’s range trade, consolidating the corrective pullback from three-month tops of $0.00000950.

The tide is seen turning in favor of SHIB bears once again, as well depicted by Shiba Inu’s daily technical graph, with the market licking its wounds from the China-led blow.

The People's Bank of China (PBOC) said on Friday, the Chinese central bank, said it was illegal to facilitate cryptocurrency trading.

SHIB price is trading in a tight range just above $0.0000070, shedding over 2% so far, looking vulnerable starting out a fresh week.

SHIB bears remain hopeful whilst below Fib 61.8% level

The meme-based coin managed to find strong bids at $0.00000676, the 38.2% Fibonacci Retracement (Fib) level of the recovery from the September 7 lows of $0.00000510 to the three-month tops of $0.00000950.      

However, the recovery rally from five-day lows ran into strong offers at the critical 61.8% Fib level at $0.00000781, knocking off DOGE price back below all the major Daily Moving Averages (DMA).

However, for the upswing to extend, SHIB price needs to find a strong foothold above the critical 61.8% Fib level at $0.00000781 on a daily candlestick closing basis.

The 14-day Relative Strength Index (RSI) has pierced through the midline for the downside, changing course and signaling that there is room for additional weakness.

Therefore, SIHIB bears once again look to retest the abovementioned 38.2% Fib level on selling resurgence.

A daily closing below the latter will expose the 23.6% Fibo level of the same advance at $0.00000612. That level will be the line in the sand for the SHIB buyers, a breach of which will call for a resumption of the double top bearish reversal from near $0.00000950 levels.

SHIB/USDT: Daily chart

Alternatively, immediate resistance is envisioned at the 50% Fib level at $0.00000729, where the 21-DMA hangs around in close proximity.

Further up, the 61.8% Fib level at $0.00000781 will be a tough nut to crack if the upside momentum gathers steam.

SHIB bulls will then charge up to test $0.00000855, which is the 78.6% Fib level. Only a firm break above the latter could revive the uptrend towards a powerful barrier at $0.00000950.