According to U.Today, Shiba Inu, the popular cryptocurrency, is on the brink of a potential crisis as it grapples with possible selling pressure that could theoretically push its value below $0.00001. The digital asset has recently found a strong support level at $0.000021, which is vital for its short-term stability. Any breach below this level could escalate the selling pressure.
The 100-day Exponential Moving Average (EMA) is currently playing a crucial role in supporting the price. This technical indicator often serves as a psychological barrier for traders and can either strengthen buying confidence or, if breached, lead to increased selling. If Shiba Inu's price falls below this EMA, it will meet the next major support at the 200-day EMA. However, if the price breaks down below the 200-day EMA, the next significant level of support is notably lower, below $0.00001. Such a move would essentially nullify the uptrend Shiba Inu has experienced throughout 2024, potentially resetting market expectations and investor sentiment around the asset.
In terms of resistance, Shiba Inu faces immediate barriers at $0.0000228 and $0.0000245. These levels represent short-term goals for the asset to reclaim to maintain its bullish momentum. Overcoming these could push the asset back into bullish territory and reignite investor interest, potentially leading to a price surge. It would also signify the recovery of the cryptocurrency market in general.
Looking forward, the future of Shiba Inu is linked to its ability to stay above these critical support levels. A sustained breakdown below $0.000021 could trigger a cascade of selling, undermining recent gains and exacerbating the sentiment surrounding the meme coin.