SHIB faces critical support after losing 8% that day

SHIB failed to break critical resistance at $ 0.000073 and is currently declining again towards the $ 0.00006 support. The last time the price hit this level, the bulls made a strong comeback, but can they do it again?

Shiba Inu trading activity dropped to summer levels with fewer than 25,000 trades on November 3rd.

While the price of an asset quickly fell more than 8%, the majority of SHIB owners are either still profitable or even balanced. The main reason for the positive input data is the rapid increase in the SHIB price.

Source: CryptoRank

But even if most of the market is still profitable, traders have become more cautious and left their money untouched. But depending on the correlation between price and indicator, another price drop could trigger a collapse.

SHIB price analysis

Key Support Level: $ 0,0006

Key Resistance: 0.000073 $

Both the price action and the indicators signal that SHIB probably used a lot of strength during the last bull run and will need more time to recover before the comeback.

Source: TradingView

Technical indicators

Trading Volume: The volume has practically disappeared in the last 2 days. There is currently little interest in SHIB. The price movement also shows the same pattern. Usually, days of low volume herald large movements. This happened when the SHIB asked for assistance.

RSI: The RSI is in free fall, especially in the daily timeframe. There are no bullish signals at the moment. We will have to wait for SHIB to hit support to see if there are more bullish signals in the lower time frames.

MACD: MACD has completed a bearish crossover in the 12 hour timeframe. If the MACD moves up in the daily timeframe, the SHIB will not appeal to future buyers. Both the histogram and moving averages are bearish on the lower timeframe, while hopes for an upward curve in the MACD moving averages are on the daily chart.

This can be decided when the price hits the support, but when it falls below the daily chart will turn bearish. On the flip side, a strong rebound in support will lead to a new rally.

Source: TradingView

The trend is identified as bearish in the short term. When the SHIB hits the support area, we need to reevaluate the trend based on the price movement at that point in time.

Short term forecast

SHIB could go back to $ 0.0006. In this case, it is best to “stand still” and wait for the price to decide on the next step. The 10th altcoin by market capitalization has had a great rally this year. As a result, by this point the price is likely to have exhausted its momentum and run out of fuel to push higher in the short term.

When the market heats up, buyers will be tempted and SHIB will only become attractive if there are clear bullish signals. Unfortunately, these signals are not appearing at the moment.

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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

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