Shiba Inu Price Sees 15% Drop Amid Overhead Supply, Buy this Dip?

Shiba Inu Price: SHIB, the popular Dog-themed cryptocurrency witnessing waning bullish momentum at $0.000045 resistance. The daily candle with long-tail rejection indicates the profit booking from short-term traders and bolstering a new correction trend in the Shiba inu coin. However, with Bitcoin reaching new peaks, there’s potential for memecoin enthusiasts to gather momentum and prepare for the next upswing.

Also Read: Shiba Inu Weekly Burn Soars 9K% As 14 Mln SHIB Burnt Amid Recent Developments

Healthy Retracement Sets SHIB Price For Higher Rally

Over the last two weeks, the meme cryptocurrency sector has emerged as outperforming the asset class, showing over triple digital gains in top tokens like Dogecoin(DOGE), Shiba Inu (SHIB,), Pepe coin (PEPE), Floki, and Bonk.

Analyzing the daily chart shows the Shiba Inu price surged from $0.00000934 to $0.0000456, registering 388% growth. However, the newfound supply pressure at this high triggered an immediate reversal in this memecoin and plunged to a $0.0000341 price value.

This long-tail rejection candle indicates a profit booking from a short-term trader which may encourage a minor correction in the SHIB price. The pullback wavering above the 38.2% Fibonacci retracement level reflects that the buyers still hold a firm grip over this asset.

This ongoing consolidation should assist the SHIB buyers to replenish the exhausted bullish momentum and prepare for the next upswing.

For buyers, a breakout immediate resistance of $0.000037 would be an early sign of renewed recovery, while a breakout above $0.0000456 will give the necessary confirmation. 

However, as per the Fibonacci retracement level, the current correction trend may face demand pressure at $0.00003178, and $0.00002747 marks as they align with 38.2% and 50% FIB levels respectively.

Technical Indicator:

• Moving Average Convergence Divergence: A bearish crossover between the MACD(orange) and signal(blue) indicates the SHIB price enters an active correction trend.
• Exponential Moving Average: A 50 EMA slope of 4hr chart provides suitable support for buyers to maintain a recovery trend.