Shiba Inu Shows Resilience Among Market Volatility, Faces Resistance at $0.000020
Shiba Inu (SHIB) has recently demonstrated notable resilience, rebounding to $0.000017 after a significant dip. Following a robust rally in the first quarter of 2024, many altcoins, including Shiba Inu, have experienced substantial declines from their March highs. Despite the recent gains, Shiba Inu faces critical challenges as it attempts to sustain its recovery.
After hitting a monthly low on July 5, 2024, at $0.000012, Shiba Inu rebounded by 30%, reaching $0.000017 by July 9. This surge can be attributed to improved investor sentiment following the release of dovish Non-Farm Payroll (NFP) data by the US Bureau of Labor Statistics. However, there has been a 27% decrease in SHIB’s trading volume in the last two days, dropping from $36.46 million on July 7 to $26.3 million on July 9. This fall in trading volume amidst a price recovery often indicates a need for more confidence around the sustainability of the uptrend.
Currently, Shiba Inu is confronting a substantial resistance level at $0.000020. Technical signals indicate that this hurdle will be challenging to surmount. The double-top pattern around this price point signifies strong bearishness, and Bollinger Bands (BB) suggest SHIB is still trading below the middle band, pointing towards further downward pressure. The Bollinger Bands show that SHIB has remained below the middle band ($0.000016887), reflecting a sustained bearish trend.
Recent price activities of SHIB have struggled to penetrate the 23.6% Fibonacci retracement level at $0.000018748, which serves as a significant resistance region. Successfully breaching this level would invalidate any bearish bias and indicate potential recovery. Key support levels to watch are marked at $0.000015026 and $0.000014000, respectively. Breaking beneath these could result in further downside moves, potentially retesting last week’s lows. Keeping these support levels intact is crucial to stabilize SHIB’s value and avert further sell-offs.
This volatility has particularly affected meme coins like Shiba Inu across the market recently, with other external factors also influencing investor sentiment. Major holders’ large-scale liquidation and market reactions to macroeconomic data, such as Germany’s transfer of 16k BTC via exchanges and market makers, have added downward pressure on SHIB recently.
Given the current technical setup and market conditions, several potential scenarios could unfold for Shiba Inu. A bearish continuation could be set if SHIB fails to overcome the $0.000018748 resistance and trading volume continues to decline. The price could face further bearish pressure, with key support levels at $0.000015026 and $0.000014000 being critical to watch. A break below these supports could lead to a retest of the recent lows around $0.000012.
For SHIB to undergo a bullish reversal, it must first conquer the resistance area at $0.000018748, followed by the $0.000020 level. This would require significant trading volumes and more market-wide buying activity. Overcoming the 20-day SMA ($0.00001697) and the 38.2% Fibonacci retracement level ($0.00001912) would serve as additional confirmation of an uptrend possibility.
With the present technical setup, Shiba Inu’s price is likely to face significant hurdles if it is to keep its latest gains intact. There has been a drop of 28% in trading volume, signifying traders’ caution towards a possible downturn of about 15%.
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