Shiba Inu Faces Strong Bearish Pressure: Will SHIB Test New Lows?

• Shiba Inu’s market structure has been notably bearish, with its price dropping below critical 10-week range lows.
• Despite the magnet zone of liquidity at $0.00003, the downtrend shows little sign of reversing.
• Analysts believe that unless significant support levels hold, further declines may be imminent for Shiba Inu.

Understand the current bearish trend in Shiba Inu, its critical support levels, and what could potentially reverse the downtrend.

Shiba Inu Faces Strong Bearish Pressure

Shiba Inu (SHIB) has been grappling with severe selling pressure lately. Technical indicators have pointed towards a sustained downturn. The Relative Strength Index (RSI) on the daily chart has been consistently below 30, indicating robust bearish momentum. Additionally, the Chaikin Money Flow (CMF) at -0.14 signals a significant outflow of capital, further supporting the bearish outlook.

Indicators Align for Continued Downtrend

Confirming this sentiment, Shiba Inu recently broke below the critical ten-week range low of $0.00002. The threat to the 78.6% Fibonacci retracement level at $0.0000172 is particularly concerning. Should SHIB close a daily session below this threshold, it would likely slide towards the psychological support level at $0.00001.

Potential Silver Lining for Shiba Inu Bulls

Despite the prevalent bearish sentiment, there’s a glimmer of hope for Shiba Inu bulls. The previous week’s price action around the $0.000018 mark hinted at some consolidation, suggesting the potential for near-term stabilization. This price action has attracted attention back to the liquidity band around $0.0000175.

Examining Possible Reversals

If Shiba Inu can avoid making lower lows, a reversal towards the next significant liquidity pocket at $0.00003 is plausible. However, this scenario hinges on the bulls’ ability to stave off further declines and accumulate sufficient buying momentum.

Conclusion

In summary, Shiba Inu is navigating a critical juncture where it either stabilizes around current levels or continues its downtrend. The coming days will be crucial as traders watch for signs of either a bullish reversal or a continuation towards lower support levels. Stay tuned to see how SHIB’s price action unfolds.