Shiba Inu slides 9% to find support. What are the odds of a reversal?

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Shiba Inu slides 9% to find support. What are the odds of a reversal?

By Motiur Rahman - min read

Shiba Inu (SHIB/USD) trades at merely $0.000010 after losing more than 10% in the week. That comes as investors develop a risk-off attitude towards volatile assets. The current level is a make-or-break point for SHIB, going by the current technical indicators.

The absence of a price catalyst in cryptocurrencies has been fueling a bear market for SHIB. First, the general mood in crypto remains bearish. As of press time, leading cryptocurrencies Bitcoin and Ethereum had fallen by more than 4% and 3%, respectively. The declines happen as investors exercise caution ahead of the US inflation data on Thursday.

Aside from the macro events, the SHIB fall happens amid delayed projects. That includes the much-anticipated metaverse. The utility of the meme token remains low, and most of its movements have been somewhat speculative. However, whales continue to hold the token on expectations of a price pump. Data by Whalestats shows that SHIB is the most-held cryptocurrency by Ethereum whales. The rank excludes stablecoins, USDC, USDT, and stETH.

Shiba Inu price movement and prediction

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Source – TradingView

Shiba Inu trades at crucial support on the daily chart. We call it a make-or-break level because if bulls do not hold it, the price could crash back to the yearly lows. Turning to the MACD indicator, a bearish crossover occurred as the price hit $0.000010.

The momentum is weak at the crucial support. The trading volume is down 49%, highlighting a decline in investors trying to scoop the meme token at the support. 

Should you buy Shiba Inu?

SHIB is not yet a buy. Although a reversal could occur at the current level, sentiment remains weak, and momentum is low. Thus, there are greater chances that SHIB will fall below $0.000010. The probable next support for the cryptocurrency lies at $0.0000080.