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Shiba Inu (SHIB) is currently navigating through turbulent waters as it grapples with a critical support zone that could determine its short-term trajectory in the cryptocurrency market. After experiencing a steep 5% decline, SHIB has reached a support level that could potentially stabilize or even reverse its recent downtrend. The coin's price dipped to $0.0000141 today, marking a significant low from its recent peak of $0.0000176 on July 27. This downward trajectory has been influenced by a broader market sell-off, impacting various cryptocurrencies across the board.
Significant on-chain activity has confirmed the current support range between $0.000014 and $0.000015. IntoTheBlock data shows that around 14,600 addresses have bought approximately 94.88 trillion SHIB within this range of prices only for consolidation.This signals strong buy interests at these levels and probably acting as a platform for any future drop-offs as well as rebounding. If SHIB holds above this area, it could stop further drops in value while also setting off positive thoughts among people trading this cryptocurrency.
Shiba Inu (SHIB) is currently under intense pressure from the markets as it tests vital support levels. Over the past few days, there has been continuous decrease towards meme coin price until reaching the most recent low point of $0.0000141.This consolidation suggests a strong buying interest at these levels, which could provide a cushion against further declines and possibly serve as a springboard for a rebound. If SHIB manages to sustain above this zone, it might prevent further erosion of its market value and encourage a bullish sentiment among investors.
There were relatively high volumes traded within the current support zone ranging between $0.000014 - $0 .000015 which could indicate potential areas where buyers are likely to be present during consolidations periods like these witnessed before. This is evidenced by data on the onchain, such as reports of many addresses buying SHIB in that price range. Consequently, increased bullishness could lead to a stabilization at this position with only slight rebounds.
SHIB technical indicators have given mixed signals on both daily and 4-hour charts. The Relative Strength Index (RSI) on the Daily chart is just above oversold territory suggesting that SHIB may be undervalued and potentially due for a corrective rally if buyer momentum picks up. On the other hand, MACD has remained bearish, with the signal line staying above MACD line indicating continued downward pressure. As more buyers accumulate at present levels, they might provide some support against further price reductions; however, failing to penetrate this support would open up for further losses in SHIB and even go down to lower support levels as seen by market professionals.
This recent reorganization of Genesis into bankruptcy and subsequent allocation of its digital assets has raised concerns across investors leading to a risk-off atmosphere which has also affected the price of SHIB. This backdrop creates a challenging environment for SHIB to mount a significant recovery.
If it holds above the support level and starts rallying back towards its 50-day moving average around $0.0000172, it could indicate a beginning of an upward trend for this cryptocurrency. Whether or not such a scenario will come true depends upon whether the selling pressure can be absorbed by the market while transitioning into buying pressure.
