Shiba Inu (SHIB), the popular meme-inspired cryptocurrency, is currently experiencing a price drop and is trading at $0.0000208, which, according to the Bollinger Bands, is quite close to the "oversold" zone — this is an important moment for traders to keep an eye on.
Bollinger Bands show three lines: the upper, middle and lower bands. The middle band is based on the 20-day moving average of the security, while the upper and lower bands are two standard deviations away from this average. SHIB is now approaching the lower band, which is 3.58% lower than its current price.
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When an asset approaches the lower band, it can be a sign that the market may be oversold. For SHIB, this suggests that it may have fallen too far, too fast. Some people see this as a reason to be cautious, as it can mean that people are feeling negative about the market.
But this oversold condition can also be a sign that things are about to turn around. So, the market could be about to bounce back as long as buyers step in.
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If theShiba Inu token can find support at this level and people start buying more, the next important resistance point to watch is $0.0000223, where the 20-day moving average is currently located. If SHIB can also break above the median, the next level to watch is the upper band at $0.0000246.
While things may feel a little bearish forSHIB at the moment, there is still a chance we could see some good news. Entering the oversold zone could be a chance for the market to bounce, so traders should be ready to act.
