Shiba Inu Faces Important Support Level in Downtrend, Is a Reversal Coming?

Recently, the price of Shiba Inu has fallen. Its price has tested important support levels. Its future depends on the ability to hold the support level near $0.0000125. Failing to hold this level could pave the way for further declines, with key support levels found just below $0.0000115 and $0.00000815. However, a reversal could occur if SHIB surpasses the resistance threshold near $0.000021.

Shiba Inu Struggles Near $0.0000125, Checking Important Support Level At the time of the press report, the price of Shiba Inu was just slightly above the support level of $0.0000125, a price that has been tested multiple times in recent months. The current price action of SHIB indicates that the coin is at a critical moment. The chart data shows that the price of SHIB is trending down steadily from the highest price reached at the beginning of 2024. The weekly chart indicates a downward trend. We can see multiple rejection points at the resistance area around $0.000021. The resistance level is significant enough to limit the bullish potential of SHIB into a downtrend. Currently, SHIB is hanging above the important support level of $0.0000125, with traders closely monitoring to see the limits of this area. However, if SHIB cannot push itself above $0.0000125, it will find support at $0.0000115. Falling below this level will put SHIB at risk of continuing to fall, with the next main support level existing at around $0.00000815. The short sellers of SHIB below have attempted to negate the upward momentum as the price has repeatedly returned to the 50 moving average (MA). The price pullback level near $0.0000115 has provided some support during the previous rally. If that happens again, it could be seen as a reversal of the current downtrend. However, if SHIB does not recover from these levels, further declines are to be expected, down to the $0.00000815 area. The Resistance Level Near $0.000021 Limits the Recovery Potential of SHIB Both the daily chart and the 4-hour chart indicate that the price of SHIB is characterized by a wide trading range, moving within a support level held at $0.0000125 and a resistance level held at $0.000021. This consolidation has been reflected in the price action over the past few weeks. The buyers are trying to push the price up near the support level, while the sellers are controlling the price at the resistance level. The price chart of SHIB indicates that this coin may struggle to find its footing and accumulate enough momentum to break through these resistance levels in the short term. SHIB's technical indicators show some unyielding evidence of the current market sentiment. On the 4-hour chart, the price of Shiba Inu is below the (SMA) simple moving averages of 50, 100, and 200 periods, and the trend is falling. Recently, the SMA 50 (green line) has acted as resistance. On the other hand, the SMA 200 (blue line) is miles away from the price, indicating that the overall trend is still Bearish.

Along with the moving averages, the current index is 23.21 from the Money Flow Index (MFI) indicating that SHIB is an oversold coin. This may suggest that the market is ready for a short-term recovery but has not yet escaped the overall bearish trend. However, if the MFI continues to rise, buying pressure may increase and this currency pair could reverse in the short term.