Shiba Inu (SHIB) It was ranked 15th in the CoinMarketCap ranking after the price action last week. Due to the general downward trend in the markets as well as the dominance of sell orders, it seems highly likely that the losses on the charts of the asset will continue in the coming days. Overall, the bearish bias seemed to dominate, although there were some notable support levels that the SHIB price could take on an upside. So will the Shiba Inu price continue to drop?
Shiba Inu (SHIB) 2-Hour Chart
A series of Fibonacci retracement and extension levels (yellow) were drawn based on an SHIB move from the $0.000002183 high to $0.00003 high in mid-April. At the time, the 61.8% and 78.6% retracement levels were expected to remain as support as this upward move seemed to break the market structure on the lower timeframes and turn it bullish.
Later in April, however, these levels were broken as supports and SHIB price managed to retake 100% of the upward movement and continued to decline. At the time of reporting, the 200% level seems to have taken a break right now. At the lower levels of the chart, the $0.0000094 and $0.0000054 levels are expected to act as support in the coming days.
SHIB price Will it continue to fall? A drop from where SHIB was trading at press time to the $0.0000094 mark represents a 40% drop. The RSI on the two-hour chart failed to cross the neutral 50 and in doing so formed a bearish bias. The RSI rose as the price fell, and such a development indicates the continuation of the downtrend.
The Stochastic RSI has also formed a bearish cross above 80 and has dropped in the last hours. A/D was also in a downtrend, indicating significant selling in the markets.
If SHIB breaks a daily close below $0.0000136, it is likely to head towards lower support on the charts. In such a scenario, opening a short position can be considered. Alternatively, a riskier attempt would be to start forming a Shiba Inu short position in the next few hours and the stop-loss could be set at $0.0000168, just above the 161.8% extension level.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.