It’s been a while since we looked at Shiba Inu. Memecoin failed to break its previous high, raising the risk of a further decline. What is the current currency position?
The big picture
We’ll start this analysis with the Shiba Inu weekly chart. This is important for looking back at price history. This highlights the key price levels that can influence the price. Below we see this as a gray zone, red line and blue line.
Over the past few months, the Shiba Inu has been hitting lower highs and lower lows. The coin is in a downtrend, but as you can see from the blue arcs, the coin has made its first higher low. This happened after the coin reached the key gray support zone around $0.000006.
Since then, the coin seems to be preparing for an upward trend. The coin rose from this higher low and attempted to break 0.00001140 (the location of the previous high). It would be good if this had happened because we could expect a new uptrend towards the blue line. But unfortunately the course slowed down here.
Short-term interest rate
This isn’t a reason to panic, but it’s not the best case scenario either. To explain this better, let’s also look at the 4-hour chart. Here you see the red line from the first graph and a new blue line. The latter is only plotted to show a small change in trend.
Since SHIB dropped below the red line, the coin has started making lower lows and highs again. In the short term, this is not a pleasant prospect. And in combination with the weekly chart, long-term expectations also seem to be in jeopardy.
The only thing that can cause a small revival now seems to be an even greater euphoria. The price needs to cross the blue line at $0.00001 to look positive again. This is also a psychological limit, as it is a “round” number.
Unfortunately, we cannot expect this as there are more signs of a further decline in the short and long term. If a positive scenario doesn’t materialize, SHIB needs to make sure the downtrend doesn’t last long, otherwise it could be a tough few weeks.
Source: BTC Direct
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Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
