Over the past few days, Shiba Inu (SHIB) has faced significant headwinds, marking one of its steepest declines in recent times. Following substantial liquidations of long positions, the price of this meme-inspired cryptocurrency failed to reclaim the critical support level of $0.0000283. Its inability to hold this threshold, confirmed by both daily and weekly candlestick closes below it, has led to further downward pressure, with SHIB continuing to slide in the latest trading session.
Now, investors and $SHIB Inu supporters are left wondering where this downtrend could stabilize. While predicting an exact bottom in the notoriously volatile crypto market remains a challenging and often unreliable task, certain technical indicators can provide guidance. One such tool is the Bollinger Bands, a widely respected indicator developed by trading expert John Bollinger. The Bands consist of a simple moving average accompanied by two volatility-based bandsโone positioned above and the other below the average.
Currently, SHIBโs price is trading below its moving average, suggesting that further downward movement toward the lower Bollinger Band is likely. On the daily chart, this lower band is situated around $0.00002438, approximately 10% below SHIBโs present value. While price deviations within this range are possible, this area could represent a temporary bottom where the selling pressure diminishes, offering a more strategic entry point for investors evaluating the tokenโs prospects.
For Shiba Inu to invalidate this bearish outlook, the price must reclaim the moving average by rallying approximately 6.6% above its current levels. A decisive move back above this key resistance would signal a potential shift in sentiment, reducing the likelihood of further declines. Until then, traders should closely monitor this lower Bollinger Band region as a pivotal support level for SHIBโs price action.
