SHIB Price Break Below Monthly Support Hints a Quick 8% Fall

Since the onset of October, the SHIB price has been grappling with heightened selling pressure, culminating in a pronounced decline on the daily chart. From its last upswing of $0.00000761, the coin’s value has plummeted by 7.6%, landing at a current valuation of $0.0000067. Alarmingly, amidst this downturn, the token has slipped beneath the foundational support of its month-long consolidation phase, hinting at the potential for an extended bearish trajectory.

Also Read: Bad Idea AI & Tangem Collaboration Ignites SHIB Community Buzz

Is SHIB Price Heading to $0.000006?

• A $0.000007 support breakdown ended a month-long consolidation in the seller’s favor
• The falling price could face an intense supply zone at $0.0000064 and $0.0000054.
• The intraday trading volume of the Shiba Inu coin is $81.5 Million, showing a 10% gain.

Source- Tradingview

In the last five weeks, the Shiba Inu price oscillated between the confines of $0.00000774 and $0.000007 horizontal level, forming a sideways pattern. This consolidative phase emerged in the aftermath of August’s stark drop, seemingly recuperating the exhausted bearish momentum. 

However, given the prevailing bearish undertones enveloping the crypto sector, the SHIB price registered a notable break below the established lower bound on October 9th. With an intraday loss of 0.72%, the crypto sellers project a follow-up to the bearish breakdown yesterday.

If this selling pressure persists, the asset could further diminish by approximately 7%, aiming for the next support target at $0.0000064. Such a decline would also push the SHIB price below the 78.6% Fibonacci retracement level, a significant threshold derived from its June-July ascent. 

A definitive breach here could amplify bearish sentiment, propelling the asset towards a deeper correction level of $0.0000055.

SHIB vs BTC Performance

Source: Coingape| Shiba Inu Price Vs Bitcoin Price

Contrastingly, a comparative analysis of Bitcoin and Shiba Inu unveils divergent price actions over the past quarter. Since late August, the Bitcoin price has started a new relief rally to regain its lost ground whereas the SHIB coin continues to prolong the downward trajectory. with the current weakness in this meme coin, the coin holders may witness even deeper corrections if the broader market sentiment remains bearish,

• Bollinger Band: The coin price challenges the lower band of the Bollinger band indicator suggesting active bearish momentum.
• Average Directional Index: An uptick in the daily ADX slope reflects the seller’s strength to lead to further downfall.