Will Shiba Inu Coin Lose $0.00001 Psychological Support Amid Market Sell-off?

In the February month consolidation, the Shiba Inu coin showed the formation of a descending triangle pattern. Under the influence of this bearish pattern and increasing bearishness in the crypto market, the Shib price witnessed an aggressive downfall and plunged to a 0.786 Fibonacci retracement level. Is recovery possible from this FIB support or ongoing downfall will continue?

 Key Points:

• In theory, an asset price dropping to such a low level of Fibonacci retracement (0.786) is considered a sign of weakness in bullish momentum. 
• The ongoing downfall in SHIB price will continue until the overhead trend is intact
• The intraday trading volume of the Shiba Inu coin is $417.5 Million, indicating a 3.5% loss.

Source- Tradingview

The Shiba Inu coin started its correction phase after it turned down from the peak of $0.000015. However, the V-top reversal extended more than expected as the overall market sentiment increased in bearishness.

By the press time, the SHIB price trades at $0.00001, recording a 34% loss over the past five weeks. Furthermore, the prices have now plunged to a combined support zone of 0.786 FIB level and $0.00000982-$0.00000967 psychological support.

This prolonged downfall to 0.786 FIB indicates strong bearish commitment which decreases the chance of uptrend continuation. As of now, the daily chart shows lower price rejection at $0.000098-$0.00000967, indicating a minor relief rally after the aggressive downfall is plausible.

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Therefore, the SHIB price could retest the flipped resistance of $0.0000108 and check price suitability at lower levels.

Technical indicator

MACD: A steady downfall in MACD(blue) and signal(orange) line below in the bearish territory indicate sustained selling from traders.

EMAs: the Shiba Inu price plunged below the crucial EMAs (20, 50, 100, and 200) accentuating a bear trend for this coin.

SHIB Coin Price Intraday Levels

• Spot price: $0.0000101
• Trend: Bullish
• Volatility: Medium
• Resistance Level- $0.00001080 and $0.000012
• Support level- $0.0000967 and $0.00000786