Shiba Inu (SHIB) has experienced a sharp decline recently, marking one of its most significant downtrends in recent months. The drop was triggered by the large-scale liquidation of long positions, causing SHIB to lose its key support level of $0.0000283. Both daily and weekly candlestick closes below this level have reinforced the bearish momentum, with the token continuing its descent in the latest trading sessions.
This decline has left investors and SHIB enthusiasts searching for signs of a potential bottom. While pinpointing an exact reversal point in the volatile crypto market is notoriously difficult, technical analysis tools like Bollinger Bands offer valuable insights. Created by John Bollinger, these bands consist of a simple moving average flanked by two volatility-based bands, one positioned above and the other below the average.
At present, SHIB is trading below its moving average, signaling a possible move toward the lower Bollinger Band. On the daily chart, this lower band sits around $0.00002438, roughly 10% below the token’s current price. This area could act as a temporary support level where selling pressure might subside, potentially providing a more favorable entry point for investors.
For Shiba Inu to reverse this bearish outlook, it would need to reclaim its moving average, requiring a price increase of about 6.6% from current levels. Such a move would signal a potential shift in market sentiment and reduce the chance of further declines. Until this occurs, traders are advised to keep a close watch on the lower Bollinger Band as a key support level for SHIB's price trajectory.