Shiba Inu Prediction: A downward dog can only bend so far

Shiba Inu price closed November's auction with a 25% loss of market value.
SHIB has retested a previously broken level of support which could be the catalyst for another decline.
A sustained hurdle and consolidation above $0.00001000 will be needed to create opposing bullish scenarios.

Shiba Inu price starts December off on a shaky start. The recent rejection of the previous support zone spells bad news for SHIB’s future price action. A sweep of the lows event could result if market conditions persist.

Shiba Inu price might be in trouble

Shiba Inu price could be setting up for an additional move south. On November 5, the bulls attempted a hurdle of the previously broken support level at $.00000976. The zone aided SHIB's uptrend attempts on numerous occasions throughout the summer. On smaller time frames, the bulls found brief momentum until the psychological $0.00001000 level triggered orders from investors looking to exit the market.

The Shiba Inu price now trades at $0.00000945 as the profit-taking event has resulted in a 5% decline. If the notorious meme coin’s technicals follow classical price action techniques, the failure to hurdle above the broken support zone could catalyze a sweep of this year’s lows at $0.00000714. An additional target if bulls remain sidelined upon the breach would be the $0.00000660 liquidity zone which has remained unauctioned since September of 2021. The bearish scenario creates the potential for up to a 30% decline from SHIB's current market value.

SHIB/USDT 1-day chart

Still, there is always a potential for trend reversal. Early evidence to support a countertrend retaliation will be a breach and sustained consolidation above the support zone near $0.00001000. If the bulls can produce the aforementioned price action, a rally towards the halfway mark of November’s 25% decline at $0.00001100 could stand a fair chance of occurring. SHIB would rise by 17% due to the alternative bullish scenario.

Share: Cryptos feed

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.