Chart by TradingView
Key Support level: $0.000047
Key Resistance level: $0.000054
SHIB’s bullish momentum has vanished and now the coin seems to be back to reality – a point that we discussed in the last analysis.
After SHIB broke below the descending triangle in blue, the selloff started and has not faded one bit since. It’s another day of major losses for SHIB holders as the coin drops a further 20%. The exit sign was given when the bottom of the triangle became resistance after being support in the past. As such, the new resistance at the time of this post is at $0.000054 and support at $0.000047.
Trading Volume: Strong selloff on the breakdown below the triangle and volume remained formidable as the price dropped. This is bearish and unlikely to stop until SHIB finds new support.
RSI: The RSI is in free fall and approaches the oversold area on the 4-hour timeframe. SHIB might fall more before a reversal signal can appear.
MACD: Unfortunately, the MACD on the daily timeframe has crossed to the negative side. This is a major bearish signal that was discussed in the previous SHIB analysis as the most likely scenario should price fall below the triangle. Now that price is here, it’s possible for SHIB to decline for some time or in the best case scenario, to consolidate above support.
The bias is very bearish at this time. There are no signs on the chart to indicate a reversal or bullish price action. At best, a bounce can take place before the downtrend resumes.
The most important question for SHIB right now is where it will find support because confidence in any immediate support levels is low, apart from $0.000030 which is 40% below the current price. This is because, on the way up, there was very little price action between $0.000030 and $0.000060.
Hence there is a lot of air between these levels. Therefore, in the worst-case scenario, seeing SHIB just above $0.000030 should not surprise anyone. However, in a more optimistic scenario, SHIB may find support on $0.000047 or just below that.
