SHIB Price Analysis: Can $0.000007 Support Withstand Market Correction?

In response to rising bearishness in the crypto market, the Shiba Inu coin witnessed a sharp V-top reversal from $0.00001136. This type of reversal with significant volume growth indicates a sustained downfall from sellers. This falling price is gradually approaching another crucial support with a breakdown motive, indicating the popular memecoin may extend the correction trend.

Also Read: Whales Buying Shiba Inu Amid Shibarium Restart, SHIB Price To Rally?

Shiba Inu Daily Chart: Key Points

• A bearish breakdown from $0.000007 could assist sellers in a 20% fall.
• A coin price below daily EMA(20, 50, 100, and 200) accentuates a bearish trend sentiment
• The intraday trading volume of the Shiba Inu coin is $175.8 Million, showing a 14% gain.

Source- Tradingview

On August 17th, the SHIB price gave a massive breakdown from the $0.0000088 support. Followed by a minor retest to confirm price sustainability at a lower level, the coin price continues its downward trend and is currently trading at $0.00000789. 

The coin price falling for three consecutive days registers a 9% drop. If the bearish momentum rises, this memecoin may slip another 10% to challenge the $0.000007 psychological support.

A potential breakdown below it with daily candle closing will intensify the selling momentum and may prolong the downfall to a lower trendline of the channel pattern around $0.000005. This bottom trend could recuperate the bullish momentum and bolster a bullish reversal.

Can SHIB Price Hold $0.000007 Support?

A long-tail rejection candle attached to the August 17th candle indicates the high demand pressure at $0.000007. Therefore, the coin holders must keep a close watch on support as it could significantly influence the future movement. If the buying momentum persists at the aforementioned level, the SHIB price could witness a sideways rise in the near future.

• Exponential Moving Average: A bearish crossover between the 50-and-100-day EMA offers an additional edge to short sellers.
• Directional Movement Index: A bearish crossover state between the DI+(blue) and DI-(orange) indicates an aggressive bear trend.