Shiba Inu gained popularity after its launch, which has led to optimistic news like an investment of USD 1,150 million from an anonymous person. The downward trend would extend for at least seven more days since the selling sentiment is still growing.
The price of Shiba Inu (SHIB) is experiencing a steep decline after hitting a new all-time high driven by various fundamentals. Multiple cryptocurrency exchanges have included the meme cryptocurrency, and someone has mysteriously invested USD 1.15 billion.
SHIB is currently trading at around USD 0.00004882 and has accumulated a loss of 3.9% in the past week. Its trading volume is above USD 2.32 billion, and its market capitalization is about USD 26.7 billion, according to CoinGecko.
Some Fundamentals That Could Support Shiba Inu
The popularity the Shiba Inu token gained within a few months of its launch has led to optimistic news about it this month. One of the most prominent events was the abovementioned investment of USD 1,150 million from an anonymous person last week.
In addition, multiple exchanges have also considered listing the token on their platforms, among which is Robinhood. However, they recently commented that they are in no rush to list the token. Even though their competition has already included SHIB on their platform, it would not be surprising if they also do so soon.
There are sufficient grounds to drive the price of SHIB higher once again. They include a chain of movie theaters, known as AMC, which will accept the token as payment for its services. However, the CEO of that company stated that this would only happen for a short period of 2 to 4 months long.
Shiba Inu seems to be doing well, but nobody knows what has caused such a sharp drop. To better understand what might happen to the value of SHIB next, it is necessary to read the following analysis.
A Preview of the Price of Shiba Inu
The price of cryptocurrency meme Shiba Inu hit a new all-time high on October 28th. However, that event triggered a strong correction that has not ended yet. For that reason, there are chances of finding investment opportunities even with the market in the red.
Analysts said that the downward trend would extend for at least seven more days since the RSI suggests the selling sentiment continues to grow. Besides, the bulls are currently absent to defend the nearest support at USD 0.00004713. It is also possible to see that more easily in the low volume of transactions.
On the other hand, a scale of correction in 4 hours already reached and broke multiple supports marked by the Fibonacci Retracement. However, there is one last level to watch, which analysts expect the bulls to defend to change the trend of SHIB.
At this point, that relevant support is standing at USD 0.00004085, where the bulls will have to defend the price to avoid falling to extreme levels.
The market remains bearish, so investors should take precautions not to suffer dramatic losses. The reason for that is that the candlesticks are below the ENV channels and below the 20-period EMA.
By Alexander Salazar
