• Shiba Inu price is approaching a critical line of defense that might determine the fate of the token.
  • SHIB is at risk of a steep decline, given the prevailing bearish bias of the chart pattern it has presented.
  • The canine-themed token could expect a 50% decline if it fails to hold $0.00000550.

Shiba Inu price is nearing critical support that would dictate the fate for SHIB. Despite the dog-themed token’s attempt to break above crucial resistance, the coin failed to hold onto support, opening up the risk of a steep decline.

Shiba Inu price appears to be headed for a plunge

Shiba Inu price has been building a descending triangle pattern on the 12-hour chart, presenting a bearish outlook. Although SHIB has been able to slice above the hypotenuse of the chart pattern on June 29, the canine-themed token appears to be headed for a sharp drop.

SHIB broke below both the declining trend line as well as the horizontal base of the triangle on July 19, painting a bearish bias for Shiba Inu price. 

The measured move of the prevailing chart pattern suggests that Shiba Inu price could drop 50%. This is calculated by measuring the height of the triangle and subtracting it from the base of the triangle, projecting a steep decline to $0.00000322. 

Shiba Inu price USDT

SHIB/USDT 12-hour chart

The 161.8% Fibonacci retracement level further adds credence to the bearish bias, which coincides with the aforementioned bearish target. 

While this massive fall to the downside remains a possibility for Shiba Inu price, only if SHIB plunges below the lower boundary of the demand zone at $0.00000550 due to a spike in selling pressure should this target be on the radar. 

Currently, the June 12 low at $0.00000550 acts as meaningful support for Shiba Inu price. Should the bulls manage to incentivize SHIB for a recovery, the dog-themed token could bounce off this level and tag the horizontal trend line corresponding to the 78.6% Fibonacci retracement level at $0.00000652. 

Further bullish momentum could see Shiba Inu attempt to tag the 61.8% Fibonacci retracement level, before pushing further toward the 50% Fibonacci retracement that coincides with the 50 and 100 twelve-hour Simple Moving Average (SMA). Investors should note that this area acts as stiff resistance for SHIB, and targets beyond this level would not be anticipated in the short term. 

 


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

Polygon joins forces with WSPN to expand stablecoin adoption

Polygon joins forces with WSPN to expand stablecoin adoption

WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.

More Cryptocurrencies News
Coinbase envisages listing of more meme coins amid regulatory optimism

Coinbase envisages listing of more meme coins amid regulatory optimism

Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.

More Crypto News
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B

Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B

As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.

More Bitcoin News
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.

More Shiba Inu News
Bitcoin: Rally expected to continue as BTC nears $100K

Bitcoin: Rally expected to continue as BTC nears $100K

Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week. 

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