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Disclaimer: The findings of the next evaluation are the only opinions of the author and shouldn’t be thought of funding recommendation.
Bitcoin has been weakly bouncing from the $38k help stage, and on the day before today, it dropped decisively beneath this mark. This didn’t bode properly for Shiba Inu bulls. SHIB has already been on a gradual downtrend since February. Additional losses appeared seemingly for Shiba Inu on the value charts.
SHIB- 12 Hour Chart
Supply: SHIB/USDT on TradingView
First issues first, the value slipped beneath the $0.00002 stage. This stage had acted as help in late January and early February, and thru March and April, the $0.0000022 stage acted as help.
Prior to now two weeks, the value has slipped beneath each of those ranges, with a candle wick all the way down to the $0.0000186 stage as properly. Due to this fact, an additional draw back was seemingly. A set of Fibonacci retracement and extension ranges (yellow) was plotted primarily based on a SHIB drop in February.
The 61.8% retracement stage has been examined in late March earlier than regular losses in April. At press time, the value has fallen beneath the February swing low. This indicated that the downtrend may prolong all the way in which to $0.0000167 within the weeks to come back.
Rationale
Supply: SHIB/USDT on TradingView
The indications pointed towards a bearish bias as properly. The RSI managed to climb above impartial 50 in March however fell again beneath the road within the second week of April. It continued to stay beneath impartial 50 and confirmed robust bearish momentum with a studying of 36.
The Directional Motion Index additionally confirmed an ongoing bearish development of significance. Each the ADX (yellow) and the -DI (crimson) have been above the 20 mark for a while now. Alongside these bearish developments, the A/D continued to slip decrease to point out that sellers have the higher hand.
Conclusion
The worth motion has been strongly bearish up to now month, and the 2 rejections on the 61.8% retracement stage are fairly vital indications that SHIB may drop beneath $0.00002 and towards $0.00016. The technical indicators additionally unanimously signaled robust promoting strain.
