SHIB May Need a Veterinary Doctor
By Mashell C., Gate.io Researcher
[TL; DR]
Shibu Inu faces a short-term bearish outlook.
Since SHIB is in an oversold state its price has a chance to reverse upwards.
Currently, SHIB is a purely crypto speculative asset as it has no intrinsic utility.
Like many other cryptocurrencies Shiba Inu (SHIB) is struggling in the market showing no definite direction. During August its price has been rising and falling from time to time. Anyway, this seems to be the trend with most leading cryptocurrencies. For the greater part of August, so far, the crypto market has shown very low volatility. One contributing factor to this is the maturing and growth of the market.
Several technical indicators show that SHIB is close to key support levels as well as resistance levels, showing a possibility that its price may fall or rise. At the time of writing SHIB is trading at $0.00001352, after gaining by 1.2% within the last 24 hours as the following graph shows.
SHIB Price Movement – CoinGecko
As seen on the graph, the SHIB price rose by a large margin between 08:00 and 16:00. The indication is that the altcoin may continue with its uptrend for several hours or days. However, by analysing the same trend using candlestick patterns we can see indecision in the market indicated by a series of dojis.
SHIB Daily Chart: CoinGecko
As the graph shows there is an exhaustion gap towards the end of the graph indicating waning bullish momentum. As you note, the gap was followed by a small green bar before a series of long tailed bearish bars, which are showing indecision in the market.
Since SHIB is currently trading at $0.00001352 its closet resistance levels are $ 0.00001360 and $ 0.00001375. On the other hand, its nearest support levels are $ 0.00001328, $ 0.00001314 and $ 0.00001305. In terms of weekly moving average analysis, both SMA 100 and SMA 200 are bullish. Similarly, EMA 100 and EMA 200 are showing a bullish outlook too.
Nevertheless, according to Cryptorphic, a contributor on TradingView the SHIB price is likely to fall further since the entire market is facing a short term bearish outlook. Commenting on the TradingView forum Cryptorphic said, “SHIB is currently in a downtrend and is likely to fall further if the market faces another bearish scenario. The price at $0.0000135 is currently hovering between support and resistance. The RSI is close to the oversold zone, indicating some room for further bearish movement. A quick market reversal could change the outlook, but nothing can be confirmed at this time.”
Despite the possibility of a short-term SHIB price fall Cryptorphic expects its price to reach $0.000081 by early 2025.
SHIB Price Movement – TradingView
As observed on the graph, the SHIB price has been capped by a downward sloping resistance trendline, showing the strength of its price fall. It is that trendline that has been suppressing the SHIB price to rally all along. Therefore, it has prolonged the Shibu Inu bearish period. Also, the future Ichimoku cloud shows a high possibility of a further drawdown as the next image shows.
SHIB Ichimoku Analysis: Morpher
As noted on the graph, the future kumo on the 4 hour chart is orange showing a possibility of a bearish trend. However, it is important to note that the SHIB RSI is within an oversold zone, meaning that it is undervalued. Therefore, the market may expect an upward price reversal. However, traders should maintain much caution since a breakdown of the $ 0.00001305 support level may result in its free-fall.
This SHIB price is not cast in stone, anything can happen. For example, Cryptorphic, cited above, believes that there is a chance that the SHIB price may reverse upwards if there is a rise in the buying pressure. In that situation it could surge past its previous ATH of $0.000088640. However, to surpass that ATH it should first break above$ 0.00001360 and $ 0.00001375 price levels.
Final Assessment of SHIB
Many investors would like to know whether SHIB is a good investment. At the moment SHIB has no known use cases which makes it just a speculative asset. Also, like other meme coins, it is highly volatile. From its launch it has remained strong on the market due to the support it gets from its large community. Celebrities like Elon Musk have also supported it. One way to position SHIB on the market could be to integrate it with DeFi or gaming platforms.
Author: Mashell C., Gate.io Researcher
This article represents only the views of the researcher and does not constitute any investment suggestions.
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