Given the increasing warning signs and flashing by technical indicators, Shiba Inu may be nearing the end of its recent rally. With today’s price action indicating a pullback of almost 3%, the meme asset is currently having difficulty maintaining momentum following a promising breakout above $0.000015.
The thick black line, which indicates the rejection at the 200 EMA, has grown to be a significant obstacle that SHIB has been unable to successfully clear. Whether Shiba Inu can stabilize or continue to decline will depend on three crucial support levels, at this point. Currently hovering just below the current price the 200 EMA provides the most immediate support.
If this moving average does not hold, the $0.0000136 region — which corresponds to the 26 EMA and the recent local consolidation zone — will be the next crucial area. This level is significant not only historically but also because it coincides with the short-term trend support of SHIB. The last lifeline if selling pressure keeps increasing is at $0.0000125.
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A complete reversal back into the prerally trading range may be avoided by SHIB at this level, which serves as a wider structural support. As a sign of diminished buying enthusiasm, volume has already started to taper off. When combined with a high RSI level, close to 70 SHIB, it is approaching overbought territory which — if not supported by fresh volume inflows — is frequently a sign of further downside.
The enthusiasm surrounding SHIB’s rally is waning swiftly, and if bulls are unable to effectively defend the 200 EMA, quickly worsening conditions may ensue. In order to avoid saying goodbye to $0.000015 for the time being and a return to more muted price action, one should continue to keep an eye on the $0.0000136 and $0.0000125 support levels.