• Shiba Inu is awaiting a 7% drop after losing a quarter of its value from its swing high on August 17.
  • The risk is skewed to the downside, as a prevailing chart pattern suggests that SHIB still has room to fall.
  • Failure to slice above $0.00000738 could spell more trouble for the bulls. 

Shiba Inu has presented a clear downtrend since its local top at $0.00000947 on August 17. SHIB has painted a bearish outlook with a governing technical pattern that suggests the canine-themed cryptocurrency still faces the risks of a 7% drop from the current level. 

Shiba Inu bulls dog-tired as SHIB continues to retrace

Shiba Inu is on course for a 19% downswing as a head-and-shoulders pattern has emerged on the 4-hour chart. 

The governing chart pattern suggests a pessimistic target toward $0.00000651, coinciding with the 78.5% Fibonacci retracement level, as the bulls hand over control to the bears. The momentum is skewed to the downside, as Shiba Inu has already fallen 12% from the neckline of the technical pattern.

However, Shiba Inu price may discover a foothold at $0.00000686 before plunging toward the aforementioned bearish target. Should SHIB fail to sustain above this level, the dog-themed cryptocurrency may eventually reach $0.00000651.

Further, the breakout line given by the Momentum Reversal Indicator (MRI) suggests that Shiba Inu may see the 7% drop materialize if the bears bust through $0.00000680. 

More pain yet to come for SHIB

SHIB/USDT 4-hour chart

On the flip side, if the bulls manage to shift price action to the upside, Shiba Inu is most likely to face resistance at the 61.8% Fibonacci retracement level at $0.00000714. The following obstacle may arise at the 200 four-hour Simple Moving Average (SMA) at $0.00000738, coinciding with the resistance line defined by the MRI.

Moving forward, Shiba Inu may continue to print lower highs, as the diagonal resistance trend line that meets the 200 four-hour SMA pressures SHIB in a downward direction. Only a break above $0.00000738 could see the token reverse the period of sluggish performance. 

An increase in buying pressure may see SHIB reach the 50 four-hour SMA, near the 50% Fibonacci retracement level at $0.00000759. However, higher levels are not expected of Shiba Inu unless purchasing volume ramps up, shifting the power back to the bulls.

 


Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Recommended content


Recommended Content

Editors’ Picks

US presidential election outcome could shape the future of crypto

US presidential election outcome could shape the future of crypto

US citizens will go to the polls to elect a new president on November 5, and their choice could be key for the future of the crypto industry and thus the price outlook for Bitcoin (BTC).

More Cryptocurrencies News
Bitcoin Price Forecast: BTC recovers as Donald Trump takes lead on polls

Bitcoin Price Forecast: BTC recovers as Donald Trump takes lead on polls

Bitcoin (BTC) slightly recovered to around $68,800 on Tuesday, following a shift in the United States presidential race that saw former President Donald Trump regain the lead, after US spot Bitcoin ETFs experienced an outflow of over $540 million on Monday.

More Bitcoin News
Crypto markets brace for volatility in tight race between Trump and Harris

Crypto markets brace for volatility in tight race between Trump and Harris

The US presidential election is one of the most significant events in the world. Due to the influence of the country’s political decisions, policies, and economic approaches, it can significantly impact crypto and global markets. 

More Cryptocurrencies News
Trump-inspired memecoin MAGA shows bullish on-chain metrics ahead of US elections

Trump-inspired memecoin MAGA shows bullish on-chain metrics ahead of US elections

MAGA (TRUMP) trades slightly down to around $3.4 on Tuesday after rallying more than 20% since Sunday. The former President Donald Trump-based memecoin is poised for further gains as daily active addresses and network growth metrics rise, signaling increased network usage and adoption

More Cryptocurrencies News
Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP