SHIB Price Analysis: SHIB Holders Lose Key Weekly Support; Is $0.00002 Next?

The Shiba Inu(SHIB) sellers started the new week by pulling the memecoin below the $0.000023 support. Today, the coin turns green and retests this breached support level. The higher price rejection candle in the retest phase suggests extending this correction.

Key points:

• The 20 and 50 DMA provides a bearish crossover
• The intraday trading volume in the Shiba Inu coin is $809.8 Million, indicating a 15.3% gain.

Source- Tradingview

The SHIB traders are aggressively selling on downtrend rallies accentuated by a descending trendline. The altcoin lost 35% from the previous swing high of $0.000035 and now threatens to extend these losses as the price sinks below $0.000023.

Last week the buyers bounced back from this support and tried to pierce the near resistance level of $0.0000275. However, the long wick rejection candle on March 1st indicated the sellers were aggressively defending this level and reverted the price to its prior support. 

On March 7th, the sellers breached the $0.000023 level, supported by sufficient volume activity. As a result, the traders are exposed to a 13.6% downside risk if the altcoin sustains below the breached level.

Alternatively, if buyers pushed the coin above the overhead flipped resistance, it would suggest that the current breakdown may have been a bear trap, which would bolster the buyers to overcome the descending trendline.

A breakout from the resistance trendline would provide the first signal for bullish recovery.

Technical indicator

A bearish sequence among the declining key DMAs(20, 50, 100, 200) indicates a downtrend. Moreover, the coin chart shows a negative crossover of the 20 and 50 DMA, supporting the ongoing sell-off.

The Relative Strength Index(42) lowering in the bearish territory indicates a negative sentiment in the market.

• Resistance levels- $0.000023, and $0.0000275
• Support levels are $0.00002 and $0.000017.