Shiba Inu price respects Fibonacci levels, SHIB ready for test to the downside
|- Shiba Inu price broke an essential trendline during the Asian session this morning.
- Overall, major cryptocurrencies like Bitcoin and Ethereum are in negative territory on Monday.
- A redip to $0.000008 would present the right buying opportunity for SHIB.
Shiba Inu price made an impressive jump this past weekend, together with most other cryptocurrencies. But it looks like profit-taking is already in full gear this morning for SHIB.
Shiba Inu bulls prepare to buy the dip
Over the weekend, the cryptocurrency was very much in the green across the board. Higher cap tokens were leading the way, with Bitcoin up almost 5%. But during the Asian session on Monday morning, profit-taking took over. Sentiment turned sour and made other cryptocurrencies like Shiba Inu dip lower.
The spike in profit-taking this morning saw Shiba Inu price drop from $0.00000895, erasing almost all the profits made since Saturday morning. Although SHIB had a bounce off the black ascending trend line toward $0.00000878 over the weekend, this support level got broken and prices dipped lower toward $0.00000837, where it started Saturday morning.
Shiba Inu price managed to stay above that level for now. But the question is, “For how long?”. With the top cryptocurrencies not pairing their losses, a false breakout looks like it is in the making.
Next to that, the general sentiment in the markets this morning was not positive. With the US markets closed for the holiday, US equity futures are all in the red this morning. With low volume, no natural recovery is expected today.
SHIB can thus still go another leg lower with buyers on the sidelines. On the downside, we already discussed $0.00000837, which matches the 61.8% Fibonacci level. A test of the 78.6% level would be interesting as this is where buyers stepped in on Friday night.
SHIB/USD 4-hour chart
To the upside, a retest of the 23.6% Fibonacci level at $0.00000873 would be proof that more upside is yet to come.
Shiba Inu price will certainly pair losses as, overall, nothing has changed the risk sentiment. It is just crucial to wait for the right approach as buyers step in. As said, either $0.00000820 or $0.00000837 are the two key levels to watch for a long.
Should more downward pressure and more selling be coming in today, expect a complete retrace of the move toward $0.0000080 before buyers enter in full.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.