Shiba Inu, the second-largest meme coin, continues to grapple with bearish pressures as the broader cryptocurrency market remains volatile. Despite a brief rally earlier this week, the digital asset has retraced, leaving investors on edge.
The meme coin has been confined to a descending channel pattern on the daily chart, with bears consistently defending the support trendline. A fleeting moment of hope emerged on Thursday when Shiba Inu surged by 11%, briefly breaking free from the downward trajectory. However, the bullish momentum proved short-lived as selling pressure resurfaced, pushing the price back towards the critical support level.
Technical indicators offer a glimmer of optimism. The Moving Average Convergence Divergence (MACD) is nearing a bullish crossover, suggesting a potential shift in market sentiment. However, the 20-day Exponential Moving Average (EMA) continues to act as a stubborn resistance, hindering any sustained upward movement.
A deeper dive into the four-hour chart reveals some encouraging signs. The price has recently bounced off the 23.60% Fibonacci retracement level, indicating potential buying interest. If Shiba Inu manages to sustain above this level and break through the overhead resistance around $0.00001457, it could ignite a rally towards $0.00001560 or even $0.00001662.
Also Read: Shiba Inu Price Prediction – Experts See Six-Fold Return Potential in 2024
Nevertheless, the overall bearish trend remains a significant challenge. Investors should exercise caution and consider the possibility of further downside, with support levels at $0.00001200 and $0.00001127 acting as potential safety nets.
The cryptocurrency market is notoriously unpredictable, and Shiba Inu‘s price action is influenced by a multitude of factors, including overall market sentiment, investor confidence, and regulatory developments. Traders and investors should conduct thorough research and consider consulting with financial advisors before making investment decisions.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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