Shiba Inu's price is nearing a critical support level that would dictate the fate for SHIB. Despite the dog-themed token’s attempt to break out above crucial resistance, the coin failed to hold onto a support, opening up the risk of a steep decline.
Shiba Inu's price has been building a descending triangle on the 12-hour chart, presenting a bearish outlook. Although SHIB price has been able to slice above the hypotenuse of the chart pattern on June 29, the canine-themed token appears to be headed for a sharp drop.
SHIB price broke below both the declining trend line as well as the horizontal base of the triangle on July 19, painting a bearish bias for Shiba Inu price.
The measured move of the prevailing chart pattern suggests that Shiba Inu's price could drop 50%. This is calculated by measuring the height of the triangle pattern and subtracting it from the base of the triangle, projecting a steep decline to $0.00000322.
The 161.8% Fibonacci retracement level further adds credence to the bearish bias, which coincides with the aforementioned bearish target.
While this massive fall to the downside remains a possibility for Shiba Inu's price, only if the SHIB price plunges below the lower boundary of the demand zone at a price of $0.00000550 due to a spike in selling pressure should this target be on the radar.
Currently, the June 12 low at $0.00000550 acts as a meaningful support level for Shiba Inu's price. Should the bulls manage to incentivize SHIB for recovery, the dog-themed token could bounce off this level and tag the horizontal trend line corresponding to the 78.6% Fibonacci retracement level at a price of $0.00000652.
Further bullish momentum could see Shiba Inu attempt to tag the 61.8% Fibonacci retracement level, before pushing further toward the 50% Fibonacci retracement level that coincides with the 50 and 100 twelve-hour Simple Moving Average. Investors should note that this area acts as stiff resistance level for SHIB, and targets beyond this level would not be anticipated in the short term.
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