Shiba Inu (SHIB) has faced significant selling pressure, leading to a sharp 23% price drop over the past 10 days. Currently, SHIB trades at $0.00002568, marking its lowest point to date. Despite this setback, optimism remains as the asset approaches the crucial 50-day Exponential Moving Average (EMA), which has historically served as a strong support level. Investors are watching this point closely for signs of a potential price reversal.
SHIB’s decline follows a period of volatility that began after a strong rally in November and early December. During this rally, the token’s price surged to $0.000033, but the momentum eventually faded. Once the price fell below the 26-day EMA, bearish sentiment increased, pushing SHIB toward the 50-day EMA support near $0.00002512. This support level holds historical significance, as it often acts as a price floor during market corrections.
Potential Recovery or Further Decline?
SHIB’s ability to hold support at the 50-day EMA could determine its next move. A successful rebound from this level may prompt a price recovery, with SHIB possibly reclaiming higher targets. However, failure to maintain support could trigger further declines, potentially pushing the price to $0.000023—a region consistent with previous price consolidations.
Related article: Shiba Inu Whale Profits Big: Buys Back 114.5B SHIB After $8M Win
Trading volume for SHIB has also decreased, suggesting reduced participation from both buyers and sellers. This decline in volume may indicate waning selling pressure, which could stabilize the asset’s price and pave the way for a potential rebound. Reduced volume often signals that market participants are hesitant to act, waiting for a clear signal of the asset’s next move.
Key Levels to Watch for a Bullish Reversal
For Shiba Inu to shift momentum back in its favor, it must reclaim the 26-day EMA at approximately $0.00002730. A successful move above this level could spark renewed bullish sentiment, with SHIB potentially targeting $0.00002850 and, later, $0.00003000.
Related article: Shiba Inu Revolutionizes DeFi with Liquid Staking on ShibaSwap
If market sentiment improves, these targets may come into play. Although SHIB faces short-term challenges, the 50-day EMA remains a critical support level to monitor. If buyers step in to defend this level, SHIB may avoid further losses and potentially retest higher resistance zones.
Investors are advised to keep a close eye on this level, as a successful rebound could signal the end of the current downtrend and the start of a new upward move.
The post Shiba Inu Sees Drop in Trading Volume: What’s Next for SHIB? appeared first on FXcrypto News.
