Shiba Inu Drops Below Key Support Level
Shiba Inu Moves Lower As Dogecoin Remains Under Pressure
Shiba Inu declined below the key support level at $0.000007 and continued to move lower while the crypto market was under some pressure ahead of the weekend.
Bitcoin continues its attempts to settle above the resistance at $37,000, but it remains to be seen whether it will be able to develop sufficient upside momentum.
Dogecoin, which has a material impact on Shiba Inu, failed to settle above the 50 EMA at $0.3470 and made an attempt to settle below $0.3200. Dogecoin remains in a downside trend and its trading volume is declining, which is bearish for Shiba Inu.
I’d note that Bitcoin Dominance, which shows Bitcoin’s market capitalization as a percentage of the total crypto market capitalization, rallied in recent days, indicating that market’s interest in altcoins declined.
Technical Analysis
Shiba Inu managed to get below the major support level at $0.000007 and is moving towards the recent lows at $0.00000630. RSI remains in the moderate territory, and there is plenty of room to gain additional downside momentum in case the right catalysts emerge.
If Shiba Inu settles below the support at $0.00000630, it will head towards the next support level at $0.00000440. No important levels were formed between the support at $0.00000440 and the resistance at $0.00000630 so this move may be fast. A successful test of the support level at $0.00000440 will push Shiba Inu towards the next support level at $0.00000340.
On the upside, Shiba Inu needs to get back above $0.000007 to have a chance to gain upside momentum in the near term. In case Shiba Inu gets above this level, it will head towards the next resistance which is located at $0.000008. A successful test of this level will push Shiba Inu towards the major resistance level at $0.000010.
From a big picture point of view, the technical picture for Shiba Inu looks bearish, and Shiba Inu needs additional positive catalysts to break the current downside trend.
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This article was originally posted on FX Empire
