Shiba Inu Price Analysis: SHIB Facing a Critical Support, But Are Bears Exhausted?

source : cryptopotato.com

Key Support level: $0.000044; $0.000032

Key Resistance level: : $0.000050; $0.000055

SHIB’s price fell 15% yesterday during the market correction breaking the critical support at $0.000050, which now acts as resistance. Right now, the price is about to retest the strength of the support at $0.000044, which held well on November 4th when SHIB had a significant crash. Failure to defend this critical support can encourage bears to take SHIB much lower.

img1_shib
Chart by TradingView

Technical Indicators

Trading Volume: Volume has remained relatively low despite this last drop in price. This may be a sign of exhaustion from bears which could be interpreted as bullish if they fail to break below the key support.

RSI: The RSI on the 4-hour timeframe is making a bullish divergence with a higher low despite the fact that the price fell lower yesterday compared to November 10th. This reinforces the case that SHIB’s correction may come to an end unless the broad crypto market continues to fall.

MACD: The MACD remains bearish on most timeframes. Therefore it is too early to be confident that a reversal is possible. If SHIB price holds at the key support, then bulls can have a real chance to turn the price back on the uptrend.

img2_shib
Chart by TradingView

Bias

The bias on SHIB is neutral at this time. The price action also appears to have formed a larger descending triangle with the base sitting at the key support. A breakout from this triangle will flip the bias bullish or bearish depending on which way SHIB price decides to move next.

Short-Term Prediction for SHIB Price

It’s expected to see the price of SHIB just above the key support level at $0.000044. A break below this level appears unlikely at this time and would probably be triggered only by a significant market correction. So long this does not happen, SHIB has a good chance to break away from this formation and move higher in the future.

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Cryptocurrency charts by TradingView.


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