👀 $SHIB on Its Way to Reversal - U.Today Analytics

Shiba Inu has been gradually regaining value on the market, but unfortunately, the asset could not hold itself at the proper level and retraced in a dramatic fashion, losing key support levels and then plummeting toward the 200 EMA, which is the last resort support level for the asset. For a few days until now, SHIB has struggled to hold onto its gains, facing significant downward pressure. It was helpless at the critical support levels, causing a sharp decline. As a result of this pullback, SHIB is getting closer to its 200-day Exponential Moving Average.

The 200 EMA often acts as a strong support in technical analysis, representing the average closing prices over the past 200 days. For SHIB, it is particularly important as it becomes the “last resort” support of the coin. In case this level gets broken by the asset, it will be seen as signifying a longer bearish trend that could lead to more drops.

The SHIB market has been divided into two factions with regards to its sentiment. Some people, when seeing this drop, consider it just a small lapse, while others are more cautious and think that not holding key supporting levels might indicate underlying weaknesses. This recent price action reveals itself as a classical retracement pattern after making efforts toward recovery, indicating high volatility in the cryptocurrency industry. It would be advisable for investors to keep track on the 200 EMA.

A bounce from there may allow SHIB to reestablish new grounds toward its next bullish cycle. But breaking down below such a threshold may bring about further selling pressures and a continuation of the current downtrend.