SHIB drops by more than 20% a day, what’s next?

• Key Support Level: $ 0.000047
• Key Resistance: $ 0.00054

SHIB’s bullish momentum has gone and now the coin appears to be returning to the equilibrium value zone where the bulls and bears are evenly matched.

After the SHIB broke below the descending triangle (blue), the sell-off began and has shown no sign of stopping since then. This was another big losing day for SHIB holders as the altcoin fell another 20%. The exit signal is given when the support of the triangle is turned to resistance. Hence, a new resistance is found at $ 0.00054 and the next support is at $ 0.00047.

Daily SHIB / USDT Chart | Source: TradingView

Technical indicators

Volume: Trading volume is still at a high level after SHIB breaks below the triangle. This is a bearish signal and is unlikely to stop until the SHIB finds new support.

RSI: The RSI is in free fall and approaching the oversold zone in the 4 hour timeframe. The SHIB can drop more before a reversal signal such as a bullish divergence occurs.

MACD: Unfortunately, the MACD has turned negative in the daily timeframe. This is an important bearish signal that suggests that the current trend is bearish.

SHIB / USDT 4-hour chart | Source: TradingView

Perspectives

It seems that SHIB has reached a peak. This is confirmed by the breakout below the triangle, the MACD transition to the negative zone and several other weaker signals.

Slight support can be found at $ 0.000047. A loss at this level could cause the SHIB to slide rapidly towards $ 0.000030 as there was little movement during the upward move between $ 0.000030 and $ 0.000060.

As such, traders should avoid bottom fishing for now, but wait for the SHIB to form an accumulation and breakout period before taking the next position.

You can get the SHIB price. see Here.

Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews

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.

SN_Nour

According to Cryptopotato

Follow the Youtube Channel | Subscribe to telegram channel | Follow the Facebook page