Amid the impossibility for the price to hit lower lows, the probability of a rally in the short term rises. The higher trend is still bullish, for which the recent decline might be a pullback before the price increases again.
The cryptocurrency market is currently undergoing a price decline that affects Bitcoin and altcoins. The latter include meme cryptocurrencies like Dogecoin (DOGE) and Shiba Inu (SHIB), which had an excellent performance in 2021.
The leading meme coins are undergoing the effects of the losses spreading throughout the cryptocurrency market. The price of Shiba Inu (SHIB) has already fallen by 61% from its all-time high of USD 0.00008616.
SHIB is currently trading at around USD 0.000033 and has accumulated a loss of 7.2%% in the last 24 hours. Its daily trading volume is above USD 986.60 million, and its market capitalization is about USD 16.73 billion. It occupies 13th place in the cryptocurrency ranking, according to CoinGecko.
Technical Analysis of the Price of Shiba Inu
The SHIB/USDT daily chart shows that the price has remained quite bearish over the past few weeks.
Sellers have started to show signs of exhaustion since December 4th, creating a sideways range with support at USD 0.000029 and resistance at USD 0.000038.
Amid the impossibility for the price to hit lower lows, there seems to be some hope. The probability of a rally in the short term rises, but it will occur only when the price breaks through resistance at USD 0.000038.
At the moment, it seems that the immediate support level could go through a test again. The price of SHIB could even break through that support, falling lower in the short term. The demand zone where the meme coin stays extends to about USD 0.000022.
Predictions about the Value of the SHIB Meme Coin
The sellers are still the dominant force in the short term, even though they have not reached effective lower lows.
However, the weekly chart shows that the higher trend is still bullish. Therefore, the decline in recent weeks may be a necessary pullback before the price rises again.
After the mega rally of this meme cryptocurrency, it is hard to think that the profits will spread too much further.
Nevertheless, a new rally of the overall cryptocurrency market will promote further rises in the segment of meme coins.
Currently, the price of Shiba Inu is close to the 78.60% level of the Fibonacci retracement tool. It will probably attempt to look for it before the fall bottoms out.
Seeking the 88% retracement before rebounding to the upside does not sound far-fetched. Any of those scenarios will go together with the overall behavior of the market.
Before confirming that the bulls have regained control, there should be a candlestick with strong bullish determination or a significant increase in buying volume.
It is a matter of time before SHIB resumes and exceeds its previous all-time high. Of course, the behavior of Bitcoin will determine what will happen to the meme coin and the other cryptocurrencies.
By Alexander Salazar
