Shiba Inu Needs to Break 5-Week Downtrend to Reclaim $0.000008

Shiba Inu (SHIB) has been locked in a battle to reclaim the psychological level of $0.000008 since it slipped below it, with this goal persistently challenged by a 5-week downtrend.

SHIB surrendered the $0.000008 point to the bears on Sept. 1. September has seen Shiba Inu’s valiant attempts to regain this price point thwarted by persistent bearish pressure, resulting in a continuous descent.

The downward spiral for SHIB began as far back as Aug. 18, following a drop from the $0.00000876 high. This descent has led to a discernible downtrend characterized by a clear trendline.

Shiba Inu Downward Trendline | TradingView

Shiba Inu‘s latest attempt to break above this downward slope was on Sept. 23, when the asset soared to $0.00000768. However, the bears mounted fierce opposition at the price point, effectively thwarting this move.

Notably, the key to reclaiming the coveted $0.000008 level hinges on Shiba Inu’s ability to surpass the trendline. A successful breach would bring Shiba Inu face-to-face with its next hurdle at $0.00000801, located at the Fib level of 0.236. Beyond this point, a more substantial resistance awaits at $0.00000864.

Fibonacci Levels | TradingView

However, the bulls should not allow attempts at breaking this trendline to leave them defenseless. To safeguard against further declines and sustain the $0.000007 psychological support, Shiba Inu must maintain a price level above $0.00000699.

Developments within the Shiba Inu ecosystem and the overall direction of the broader cryptocurrency market could play a vital role in determining the asset’s next direction from here.

Shiba Inu Technicals

Shiba Inu’s technicals send mixed signals. The daily Relative Strength Index (RSI), represented in purple, paints a picture of recent bearish pressure. With a current value of 41.24, the RSI suggests that Shiba Inu is moving towards oversold territories.

Shiba Inu Daily RSI | TradingView

However, the RSI-based Moving Average (MA), depicted in yellow, offers some optimism, trending gradually upward at 40.29. This suggests some positive momentum for the asset.

Examining the Exponential Moving Averages (EMAs), we find that Shiba Inu’s current price rests below the 50-day EMA at $0.00000781 and the 200-day EMA at $0.00000883.

Shiba Inu EMAs | TradingView

The 50-day EMA represents a shorter trend, while the 200-day EMA signifies a longer trend. Shiba Inu’s current position in relation to the EMAs suggests it is currently facing bearish pressure on both short and long-term fronts.

Shiba Inu is changing hands at $0.00000726, down 1.64% over the past 24 hours. Volatility for the asset has dropped, with a massive 38% decline in 24-hour trade volume to the current figure of $84 million.

Source