The second-largest meme cryptocurrency, Shiba Inu (SHIB), started a corrective trend after its price retracted from the $0.000045 level in the second week of February. The change in the meme token occurred as Bitcoin prices fell below $70,000, followed by a 47% drop in Shiba Inu, marking it down to $0.0000238.
The Rise of Meme Tokens
The mentioned decline indicates a potential drop below the 50% retracement level, which could suggest the token is preparing for further declines. Amidst the February-March recovery trend in the cryptocurrency market, Shiba Inu, along with tokens like Dogecoin, Pepe Coin, and Bonk, witnessed triple-digit gains, making cryptocurrencies the better-performing sector.
From the lowest level at the end of February at $0.00000935, SHIB’s price showed an approximate 388% increase to $0.0000456. However, the extended rally, combined with a new correction in Bitcoin prices, triggered a notable pullback in Shiba Inu. This pullback can be tracked using a downward trend line that acts as dynamic resistance against buyers. With an intraday gain of 7.83%, Shiba Inu’s price rose to $0.00002745 and may prepare for another breakout attempt from the general trend line at the $0.00003 level.
Price Analysis of SHIB
This level is crucial for investors as a reversal or breakout from the trend line could significantly affect Shiba Inu’s near-future movement. A potential reversal from the resistance trend line could extend the Shiba Inu correction to $0.0000215. With the recent price increase, SHIB is attempting to reclaim its position above the 50% retracement level.
Sustainability of the price above this level could indicate that meme token buyers still have a strong hold on this token and could provide a suitable entry opportunity for newcomers. An upward potential breakout would signal the continuation of the recovery trend and offer buyers the chance to surpass the recent high of $0.000045 and exceed the $0.00005 milestone.
