There has been a breaking point that concerns Shiba Coin investors in the technical field, and the price is facing a greater risk of decline. The negativity in altcoins is gaining momentum as the price of BTC continues to move sideways today. Weakening risk appetite among investors and ongoing indifference could lead to deeper lows.
Shiba Inu (SHIB) price closed below an important horizontal support level. Losing $0.0000080 suggests that the downward trend could gain momentum. Unless Shiba Inu recovers this level, the trend will be considered bearish, and new low levels are expected.
The weekly timeframe technical analysis shows that the price of SHIB rebounded on June 10th, forming a long lower shadow. Such movements are considered a sign of buying pressure. Shiba Inu has been increasing since then. The upward movement took the price to $0.00001135 in August. However, the price was subsequently rejected by a declining resistance line and has been falling ever since.
The price is now at a greater risk of loss as it recently lost the horizontal support area mentioned above.
The conversion of the horizontal support area into resistance will be worrisome for investors. If the downward movement continues, the nearest support area will be $0.0000060. This represents a loss of 20% based on the current price. On the other hand, if the horizontal support area is surpassed without turning into resistance, it could open the door to a rally of approximately 100% up to $0.0000150.
The weekly RSI confirms the downward trend. The daily timeframe data also supports the continuation of the downward movement. Breaking down from a rising support line that has been in place since the lowest level in June, the price formed a bearish outlook on the daily chart.
The downward scenario on the weekly and daily charts indicates the same bottom area. If we don’t see a significant recovery in BTC price, investors could witness a rapid drop to $0.000006.
The volatility in oil prices and the nervousness about the upcoming Fed meeting in 15 days are causing most cryptocurrency investors to stay on the sidelines and watch what is happening.