🔥🔥🔥 #shibaInu ($SHIB ) Enters 'Red Zone' After Price Drops Below Crucial Support

Shiba Inu (SHIB) was steadily gaining traction in the market, seemingly poised for an upcoming bounce. However, a rapid change has altered the landscape. The price has fallen below the 50-day Exponential Moving Average (EMA) and shows no signs of recovering.

Currently, SHIB's position is precarious due to this sudden decline. Breaking below the 50 EMA, a crucial support level, indicates that sellers are gaining control. The 200 EMA now serves as the next major support, though it is holding on only tentatively.

If bearish pressure continues, SHIB might test the 200 EMA and potentially drop further. Selling volume surged as SHIB broke below the 50 EMA, suggesting traders are cutting their losses due to waning confidence. This trend could worsen.

The Relative Strength Index (RSI) is hovering just above the oversold area, indicating that SHIB is currently oversold.

However, this does not guarantee a rebound. Moving averages, crucial in technical analysis, are not in SHIB's favor. The 20 EMA crossing below the 50 EMA forms a bearish crossover, often signaling further declines.

Monitor this pattern closely, as it typically precedes additional downturns. SHIB trading below all major moving averages is a broadly bearish signal.

Given the current price movement, SHIB needs a significant uptick to avoid further losses. Ideally, it should quickly regain the 50 EMA to restore market confidence. While the 200 EMA is a potential support level to watch, traders should also prepare for more declines if this level is breached.

Source - u.today

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