Gridlocked between the 20-SMA (red) and 200-SMA (green), Shiba Inu’s price was in a sensitive spot. On one end, an upwards breakout would see SHIB extend its value to the 38.2% Fibonacci level and on the other, a large sell-off would drag its price back to the lower trendline.
Based on this development, SHIB lacked the strength to break away from its down-channel in order to fast-track its recovery to October highs. Moreover, if the 20-SMA (red) and mid-line is foregone, SHIB would look set to snap a new low at the bottom trendline around $0.00003944. The presence of the 61.8% Fibonacci level would help counteract an extended sell-off attempt.
Although SHIB’s indicators did give an edge to the bulls, further conviction was needed for an upwards breakout. For instance, the RSI was yet to charge into bullish territory while the MACD traded below its half-line.
Moreover, the Directional Movement Index looked to concede its bullish-bias after the -DI line edged towards the +DI line. These precarious signs did not sit favorably for those expecting a bullish near-term outlook.
SHIB traders are advised to wait for further developments before placing any bets in the market. An upwards breakout was a certainty given the lack of strong buy volumes and indecisive indicators.
For the moment, fears of a possible 15% decline to the lower trendline were also kept at bay by the 20-SMA (red) and mid-line of the pattern which functioned as support levels. Hence, a better call would be to short SHIB below its 20-SMA (red) and long SHIB above its 200-SMA (green).
Shiba Inu Price Analysis: The SHIB Token Drops To The 0.618 Fibonacci Retracement Level; Will This Rally continue now?
The correction phase in the SHIB token took its sweet time to stabilize our famous meme coin. The token price has been dropped to the 0.618 FIB level, which has the potential to provide strong support. Over the past week, the token price was also subjected to some positive news, which has captured the attention of several crypto investors.
Key technical points:
- The SHIB token price obtains dynamics resistance from the 20-day EMA
- The intraday trading volume in the SHIB token is $2.35 Billion, indicating a 41.5% gain
Source- SHIB/USD chart by Tradingview
As mentioned in my previous article on SHIB/USD, the token price gave a bearish breakdown from the symmetrical triangle of the 4-hour time frame. This pattern pushed the token price back to the crucial support of $0.35.6, which also holds a great confluence with other technical levels.
These technical levels are
- A strong horizontal support level of $0.356
- The presence of the 0.618 FIB level
- The 100 EMA line soon be reaching the token price
The crucial EMA levels(20, 50, 100, and 100) still maintain an uptrend in this token. The Relative Strength Index(43) suggests a bearish trend within this token. However, the RSI line also projects a bullish divergence, indicating the bears are trying to take control over the token.
SHIB/USD Chart In The 4-hour Time Frame
Above I have explained the importance of the bottom support level and it is also understandable that a breakout from this level, would create a significant impact on the SHIB token price.
The weekly announcement for Shiba Inu(SHIB)
- Newegg, the Electronic Retail giant, has officially announced on their Twitter page that they would be accepting the SHIB token as a payment in.’
- The SHIB token surpasses the 1 million wallet holders milestone.
Thus, in case the price bounces back from this support level. The crypto trade can notice the 20-day EMA line, and a descending trendline provides dynamic support to the price. Once the price breached this level, the long trader would get an excellent confirmation for the long side.
Shiba Inu finds new friend in Newegg, as online retailer confirms it will accept the token
Meme coin Shiba Inu is determined to prove its dominance in the space and it has done so successfully, so far anyway. From being accepted as a method of payment by prominent companies such as AMC Theaters, to being the first meme coin to get a listing in South Korea, the altcoin has had a good run.
Its community has grown tremendously in the past few months and support has not faltered. Even Shiba Inu pups (i.e. other lesser-known, dog-themed coins ) have surged in market value.
Shiba Inu has a new friend
Electronics retailer Newegg just recently tweeted about its much-anticipated collaboration with Shiba Inu. As per the announcement, it will accept Shiba Inu, the second-biggest canine cryptocurrency in the market. The tweet below sheds light on the news.
Both parties and their executives acknowledged the partnership in a tweet. The timing of this news is certainly an interesting one.
It all started with just rumors where the SHIB’s community was bewildered by the #friendshib hashtag posted by the official Twitter account of the meme cryptocurrency. Rumors about Newegg adding Shiba Inu to its list of available cryptocurrency payment options started doing the rounds last week.
Indeed, this turned out to be a reality. Newegg, the leading tech-focused e-retailer in North America has become quite a name within the crypto community. At present, Newegg supports around 11 cryptocurrencies. Earlier, it even lent support to the daddy canine coin, DOGE.
Well, this news could be the catalyst required for SHIB to recover from its losses. Surprisingly, this certainly was the case. Despite trading in the red zone over the week, at press time, it surged to more than 5% in 24 hours. SHIB was trading at the $0.00003 mark, at the time of writing.
Furthermore, the flagship token has achieved some remarkable feats over a couple of weeks. Of late, it proved to be the top dog as it surpassed the one million holders milestone.
Further, the SHIB community was rather quick to celebrate the said update on Twitter. In fact, Shiba Inu has dominated social media conversations since the digital asset found its way into the limelight a couple of months ago.
This Whale Bought 35 Billion SHIB While Market Was Crashing
Some whales are joining “buy the dip” sentiment by purchasing some SHIB.
During the market sell-off, short-term traders have dropped their positions and exited most markets. The smaller altcoins have experienced a greater loss compared to Bitcoin, including Shiba Inu and Doge.
Shiba Inu market performance
During the global market correction, Shiba Inu lost 16% of its value at the peak but then, shortly after, recovered back at a 10% daily loss, which correlated with Bitcoin’s market performance.
Following yesterday’s sell-off, Shiba Inu gained approximately 30% in one day but then dropped back at 15% daily profit. The token has been moving in a short rangebound since Nov. 26 and has not yet broken through either border of it.
While some whales buy a significant amount of Shib, the market does not seem to react in any way. The volatility of SHIB token remains low as both buying and selling pressure is reduced according to the volume indicator.
Whales are buying more Shib
Before the cryptocurrency market crashed by more than 10% in one day, the 1,000 largest Ethereum wallets dropped more than 8% of their Shib holdings by entering into USDT and other stablecoins on the Ethereum chain.
Currently, whale holding has increased back to pre-correction levels with approximately $1 billion worth of holdings remaining on whale-tier wallets at press time. Shiba Inu’s price does not seem to react in a positive way, while the token trades at $0.000038 and 0.72% growth in one day.