Shiba Inu Price Analysis: Key Levels to Watch For Amid Bitcoin Volatility

As a seasoned researcher with years of experience in the volatile crypto market, I’ve seen my fair share of bull runs and bear markets. The current state of Shiba Inu (SHIB) is intriguing, to say the least. While the Death Cross on its price chart suggests a long-term bearish trend, the short-term technical analysis paints a slightly different picture.


The cost of Shiba Inu is battling a significant support barrier in its daily view as the burn rate for SHIB skyrockets by an astonishing 1000%. This popular meme coin has been under persistent selling pressure lately, and a ‘death cross’ has appeared on its price chart. However, technical analysis of Shiba Inu suggests that traders are leaning towards a neutral to optimistic outlook in the near and medium term. If it manages to surpass certain key thresholds, this could signal a bullish reversal for the cryptocurrency asset.

Traders Neutral to Bullish on Shiba Inu Price

Over the past day, Bitcoin‘s value saw fluctuations, peaking at around $61,000 before dipping to approximately $58,000. This volatility also affected the broader cryptocurrency market, causing the total crypto market capitalization to decrease by 0.3%.

Despite a slight uncertainty among Shiba Inu traders about its future direction, data from Coinglass futures trading indicates that they are predominantly holding long positions on the asset. This is because cumulative long liquidation leverages have slightly surpassed short ones, indicating a minor imbalance in the market. This small disparity suggests that traders are hesitant and uncertain about Shiba Inu’s next steps.

Shiba Inu Price Analysis: Key Levels to Watch For Amid Bitcoin Volatility

Based on Coinglass data, the open interest for SHIB grew by 1.06% within the past 24 hours, mirroring an increase in its price. This simultaneous uptick indicates that traders are likely establishing more Long positions, suggesting they lean towards a positive outlook despite uncertainty about future market movements, as they anticipate a bullish trend.

Shiba Inu Price Analysis: Key Levels to Watch For Amid Bitcoin Volatility

The current forecast for Shiba Inu suggests that the token is at a crucial point in its pricing trend. If there’s a downturn in the market, it could lead to a significant fall, but if the buyers maintain their momentum and increase their purchases, the price of Shiba Inu might climb further.

Can SHIB Price Surge 24% With Hiked Token Burns?

Looking at the Shiba Inu’s price chart, we see a “Death Cross” formation occurring. This happens when the 50-day Exponential Moving Average (EMA) falls below the 200-day EMA. This pattern often signals a prolonged bearish outlook, predicting potential additional downward pressure on the price.

Despite the bearish Death Cross, there is a short-term recovery as SHIB is attempting to bounce from the support zone around $0.00001000. 

Shiba Inu price will likely experience resistance around $0.00001571 and $0.00001794

right now, the Stochastic RSI stands at 86.30 and 80.64, suggesting it’s in an area of excessive buying (overbought zone). This may signal that a temporary price drop for SHIB could occur in the near future due to potential market correction.

Considering the high levels of Stochastic RSI and the relatively low trading volume, it seems likely that SHIB may experience a short-term correction prior to attempting to surpass the resistance at $0.00001571.

Considering the Death Cross formation and the dominant negative market direction, it could be prudent to exercise caution and abstain from taking on long-term investments, unless there’s a significant surge above approximately $0.00001794 accompanied by substantial trading volume that suggests a potential reversal in trend.

Shiba Inu Price Analysis: Key Levels to Watch For Amid Bitcoin Volatility

As a Shiba Inu coin investor, if the price doesn’t manage to maintain its support at $0.00001300, it might indicate that traders are growing bearish, potentially causing the price to plummet towards $0.00000998. A fall below this level could suggest a continued downward trend.

Read More

2024-08-21 06:08