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Crypto: Shiba Inu in free fall, failed rebound raises fears of the worst!

Thu 25 Apr 2024 ▪ 3 min of reading ▪ by Fenelon L.
Getting informed Altcoins

The meme token Shiba Inu (SHIB) is struggling to maintain its upward momentum. After failing to break through a major resistance zone, SHIB appears to be entering a correction phase, causing concerns among holders.

La crypto Shiba Inu saigne

Correction in Sight for Shiba Inu After a Sharp Rejection at the EMA 50! 

According to a technical analysis by U.Today, Shiba Inu is at a critical inflection point. The cryptocurrency had recently climbed toward its 50-day exponential moving average (EMA), a key resistance level. However, SHIB faced a sharp rejection at this level, triggering a marked trend reversal.

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This bearish pivot at the EMA 50 signals a loss of upward momentum for SHIB, amid a broader crypto market momentum loss.

The lethargic trading volume accompanying this reversal reflects the lack of engagement from traders, hesitant to take a stand in either direction. 

The market’s indecision is also evident in the relative strength index (RSI), which oscillates around 50, a neutral value signaling neither overbought nor oversold conditions. The RSI thus confirms a lack of clear direction for SHIB in the short term.

SHIB/USDT chart by TradingView : Source  : U.Today
SHIB/USDT chart by TradingView

Support and Resistance Levels to Watch

SHIB’s failure at the EMA 50 highlights a lack of buying pressure in the crypto market overall. The meme token must now rely on immediate support at $0.000021 to prevent a more pronounced slide. 

A break below this floor could pave the way for a deeper correction, with potential support around $0.000012 at the lower limit of the channel.

Conversely, to return to an upward trend, SHIB must reclaim the EMA 50 and overcome the resistance zone around $0.00003, its recent peak. However, such a rebound would require a significant increase in participation and a change in market sentiment, both of which remain uncertain at this stage.

The upcoming sessions will be critical to gauge SHIB’s resilience. A strong bounce at the $0.000021 support is crucial to averting the risk of a more severe correction.

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Fenelon L. avatar
Fenelon L.

Passionné par le Bitcoin, j'aime explorer les méandres de la blockchain et des cryptos et je partage mes découvertes avec la communauté. Mon rêve est de vivre dans un monde où la vie privée et la liberté financière sont garanties pour tous, et je crois fermement que Bitcoin est l'outil qui peut rendre cela possible.


The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.