Two reasons why Shiba Inu’s SHIB price could crash lower

Shiba Inu price shows a bounce off the 200 four-hour SMA at $0.0000098.
SHIB could drop 15% if the immediate support level at $0.0000098 is breached.
A flip of the $0.0000139 hurdle into a support floor will invalidate this bearish outlook.

Shiba Inu price has been sitting on a mine that could blow up in the bulls’ face if they trigger a premature rally. Investors need to be patient when trading SHIB as it could result in a whipsaw, putting traders out of their positions.

Shiba Inu price needs to undo knots

Shiba Inu price has been hovering above the high-time-frame support barrier at $0.0000098 for roughly three weeks and shows no signs of breaching it. Supporting the bulls here is the 200 four-hour Simple Moving Average (SMA) that has served as a stable support floor.

While the uptrend outlook seems plausible, investors need to pay close attention to the Fair Value Gap (FVG) aka the price inefficiency that extends from $0.0000082 to $0.0000093. As long as Shiba Inu price does not fill this, the threat of a sudden reversal hangs over bulls heads.

Hence, investors should expect a 15% retracement to occur if the 200 four-hour SMA is breached. This development will be the first sign, following which, SHIB needs to slice through the $0.0000095 support barrier.

SHIB/USDT 4-hour chart

While things might seem bearish after a quick glance, they are not. In fact, the faster Shiba Inu price fills the FVG, extending between $0.0000082 to $0.0000093, the quicker SHIB bulls can trigger an uptrend.

However, if Shiba Inu price prematurely bounces off the 200 four-hour SMA at $0.0000098, it needs to move past the $0.0000139 hurdle and flip it into a support floor. Doing this will invalidate this bearish outlook for the meme coin and trigger further ascent.

Share: Cryptos feed

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