Shiba Inu (SHIB) Price at a Crossroads: Support or Further Downtrend?

The Shiba Inu (SHIB) price has taken a bearish turn as it fell below the critical $0.000010 horizontal support level. This drop suggests a prevailing bearish trend in the long term.

Both weekly and daily timeframe analyses, along with price action, align with this bearish sentiment, indicating the potential for a further decline toward the nearest support at $0.0000060.

Chart by TradingView

Shiba Inu's Descent Below Support

SHIB's price reveals a downtrend that commenced in August. Back then, the price encountered resistance from a descending trendline.

This decline led to a breakdown below the crucial $0.000010 horizontal support area. Notably, this level had served as support for most of the period between May 2022 and the present.

Currently, SHIB is midway toward the nearest support at $0.0000060. If it reaches this level, it would signify an additional 18% drop. Conversely, a breakout above the $0.000010 area and the resistance line could trigger a substantial 50% increase, with the next resistance at $0.0000150.

Interestingly, despite recent setbacks, Shibarium wallets reached the one-million mark in September.

Bearish Signals for SHIB

The weekly Stochastic RSI is displaying bearish signals.

Stochastic RSI is a tool used by traders to assess whether a market is overbought or oversold. Readings above 50, coupled with an upward trend, are favorable for bulls, while readings below 50 suggest the opposite.

Daily timeframe data supports the bearish trend observed in the Shiba Inu price action. The price fell below an ascending support line that had been in place since June.

On August 15, this meme coin broke below the support line. Since then, SHIB's price has recorded several lower highs.

Looking Ahead: Considering these bearish indicators, the most probable future scenario for SHIB's price points to a decline toward the previously mentioned long-term support level at $0.0000060.