SHIB drops 40% to critical support at $0.0000200, testing future trend direction.
SHIB forms a lower high after failing to break resistance at $0.0000340 since March.
RSI shows potential bearish trend, but MACD remains bullish, suggesting a possible rebound.
Shiba Inu (SHIB) has dropped 40% since reaching a high of $0.0000334 on December 8. The price now sits at a crucial support level of $0.0000200. This level could determine whether the trend turns bullish or bearish. Let’s break down the price action and see what’s likely to happen next.
https://twitter.com/Coinalarm_IO/status/1870134934276562999 Shiba Inu Faces Resistance and Lower Highs
After SHIB hit $0.0000345 in December, the price struggled at the $0.0000340 resistance zone. This level has held since 2022, blocking further price movement. SHIB did manage to surpass this resistance briefly in March, reaching $0.0000456. However, the price couldn’t hold above that level and left a long upper wick.
In December, SHIB formed a lower high, signaling that the bullish momentum was weakening. Now, the price has dropped by 30% to reach the $0.0000218 support area. This level plays a key role in the current range, sitting alongside the $0.0000345 resistance. How SHIB reacts here will likely decide the next move.
Key Indicators: Is SHIB Ready to Bounce or Break?
Technical indicators are flashing mixed signals. The Relative Strength Index (RSI) has dropped to 50. If it breaks below 50, SHIB could enter a bearish trend, especially if the price falls below $0.0000218. On the bright side, the Moving Average Convergence/Divergence (MACD) remains bullish.
The MACD sits above 50 without showing signs of a bearish crossover, suggesting that a rebound is still possible. At this point, the weekly chart leaves traders uncertain. Whether SHIB holds this support or drops lower will determine the next major move.
Shiba Inu’s price is testing a critical support level. A drop below could signal more declines, while a rebound may spark a bullish rally. How the price reacts to this support will be crucial for SHIB’s future trend.
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