Shiba Inu (SHIB) Faces Bearish Structure and Capital Outflow
The value of Shiba Inu (SHIB) has been declining due to a bearish structure and significant capital outflow. However, there is still a possibility of a short-term range formation despite these negative indicators.
The critical resistance level for SHIB is currently at $0.000007. This level briefly shifted to support earlier in the week but failed to sustain bullish momentum.
As of the latest update, SHIB’s price on CoinGecko is $0.00000692, with a 24-hour rally of 3.5% and a seven-day gain of 1.2%. The recent descent below the trendline support does not necessarily indicate weakness.
Assets often retest critical support levels to confirm their resilience before a significant directional shift. If SHIB can reclaim its position above the trendline, it may signal the start of a potential bullish phase.
Market Structure Analysis
Analyzing the four-hour chart, SHIB’s market structure turned bearish after falling below the $0.00000693 mark and reaching local lows of $0.00000673. Similar movements were observed earlier this month, resulting in the identification of Fibonacci levels.
The 61.8% and 78.6% Fibonacci levels did not see successful trading session closures above them, despite briefly spiking to $0.00000729. However, in the last 12 hours, SHIB bulls have temporarily halted the bearish momentum, indicating a potential bounce back to the $0.000007 level.
Moving Averages and Long-term Outlook
SHIB is currently below both its short-term and long-term moving averages, suggesting bearish momentum. However, this positioning could also indicate a consolidation phase, setting the stage for a reversal in trajectory.
Impact of Market Trends on SHIB’s Long-term Outlook
The recent market trends have raised concerns about SHIB’s long-term trajectory due to the bearish structure and capital outflow. However, analysts believe there is still potential for a short-term range formation despite these indicators.
The drop below the trendline support has added uncertainty to SHIB’s near-term performance. Nevertheless, a quick reclaim of this position could be a crucial indicator for a potential bullish phase.
Although SHIB is currently positioned below its moving averages, it’s important to consider the broader context. There is a possibility of a consolidation phase that could lead to a reversal in SHIB’s market trajectory.
Hot Take: Potential Reversal Ahead for SHIB?
Despite facing a bearish structure and capital outflow, Shiba Inu (SHIB) may have the potential for a short-term range formation and even a reversal in its market trajectory. The critical resistance level at $0.000007 remains important, and if SHIB can reclaim its position above the trendline support, it could signal the start of a bullish phase. Analysts highlight the significance of considering the broader context and emphasize the possibility of a consolidation phase that may pave the way for a turnaround in SHIB’s long-term outlook.
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