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Shiba Inu (SHIB) Enters ‘Red Zone’ After Price Drops Below Crucial Support

Tue, 4/06/2024 – 9:08

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Shiba Inu was slowly gaining traction on the market and looked like it was positioned pretty well for an upcoming bounce. However, things have changed faster than anyone could have anticipated. The price dropped below the 50 EMA and is not coming back.

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For now, SHIB’s position is uncertain as a result of this abrupt decline. A break below the 50 EMA, a critical support level, suggests that sellers are gaining the upper hand. The 200 EMA, which is currently holding the line below very delicately, is the next major support.

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SHIB/USDT Chart by TradingView

SHIB may test the 200 EMA and possibly decline even further if bears keep pushing. Selling volume increased noticeably as SHIB broke below the 50 EMA. This may indicate that traders are trimming their losses due to a lack of confidence, and that tendency may aggravate even further.

Additionally, on the downward trend, the RSI is currently hovering just above the oversold area. Although this suggests that SHIB is oversold right now, a rebound is not guaranteed. Technical analysis relies heavily on moving averages, which are currently not to SHIB’s advantage. The 20 EMA makes a bearish crossover when it crosses below the 50 EMA. 

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Keep a close eye on this pattern as it frequently signals impending declines. Further more, all major moving averages are currently being traded below by the price, which is generally a very bearish indication.

Based on the present price movement, it appears that SHIB requires a significant uptick to prevent additional losses. In an ideal world, it would swiftly regain the 50 EMA to bolster market confidence. The 200 EMA is a potential support level for traders to watch, but if this level is broken, they should also brace themselves for additional downsides.

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