Bear markets bring challenging times, and for over 1.5 years, we’ve discussed the possibility of many projects hitting historic lows. Shiba Coin is no exception, aiming for new lows even beyond those seen after its Binance listing. What’s worse, it is unclear how long this process will continue. So, how low could the price of Shiba Coin fall?
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The price of Shiba Inu (SHIB) broke below a 350-day formation, a move that could mark the beginning of a significant decline. Shiba Coin, which has been quite successful in building its ecosystem and is the second meme coin in terms of market value, is even taken as an example by the Dogecoin team. However, in a bear season, you cannot compensate for waning interest with new applications, as the shrinking user base indirectly shrinks prices.
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The price, which broke down from the 350-day formation in the weekly chart, promises a sharp decline. The collapse of the symmetrical triangle formation ongoing since June 2022 has shattered the morale of many Shiba investors who are already at a loss.
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After the break, the SHIB price reached the horizontal support area of $0.0000058 and bounced. This area has not been reached since the end of 2021. The Weekly RSI shows a downtrend. While the technical analysis of the weekly timeframe is firmly bearish, readings in the daily timeframe suggest a short-term rebound could be on the cards. The RSI, which is about to exit the oversold area, indicates that the bears are losing energy.
Moreover, the SHIB price has been following a declining resistance line since the beginning of February. Whether it breaks from or is rejected by this line will be crucial in determining the trend’s direction. A breakout suggests the next nearest resistance at $0.0000010 could be tested. But in the reverse scenario, we could see a sell-off accelerating to $0.0000040.
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The SHIB price forecast remains uncertain due to conflicting readings from the weekly and daily timeframes, but once the direction is determined in the coming days, it’s almost certain that the price can quickly run in either direction. The reaction to the current declining resistance could trigger a visit to one of the two extremes.
