7 months ago
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Shiba Inu is seeing some downside today that has sent its price below its support level. This downside has its roots in a number of things, with some attributing directly to the Bitcoin price. However, the outlook for the meme coin may not be completely bleak as time moves forward.
Shiba Inu 14% On The Weekly Chart
In the last week, the Shiba Inu price has followed the likes of Bitcoin and Dogecoin as they lose the majority of their gains from the prior week. The daily drawdown itself has seen the meme coin drop around 2% to bring it back below $0.000027, a level which had served as significant support at the start of the week.
One of the major reasons behind the decline is the Bitcoin price crash which came as a result of rising outflows from Spot Bitcoin ETFs. This crash in the Bitcoin price naturally spread to the rest of the market, causing what can be described as a cascading effect on altcoins.
Since the crash began on Monday, the Shiba Inu price is down by over 14% and has continued to show weakness even now. At the same time, SHIB has also seen a notable decline in its trading volume. According to data from CoinMarketCap, its daily trading volume fell 28% in the last day.
Usually, when trading volume is down, it means investors are no longer as interested in trading a coin and may have moved somewhere else or may even be waiting out the bear trend. This can adversely affect the cryptocurrency’s price, especially when holders begin panic selling, thinking the price will keep falling.
Not All Bad News For SHIB
Despite the negative headwinds that continue to plague the meme coin at this time, it is not all bad news for Shiba Inu. This is because crypto analysts believe that the drawdown is only temporary and that the SHIB price is destined to soar in the future.
One such crypto analyst took to the TradingView website to outline their expectations for the meme coin. The analysis shows the multiple possible price points for SHIB as it starts to move up. However, they explain that the coin would need to stop bleeding, and only when the selling stops would it be able to move up.
The crypto analyst also identifies a ‘Distribution Price’ for the coin, which they place at $0.00008488. But the coin still has a lot way to as the analyst explains that price will need to first drop to $0.00001249.
“A correct move should have been to come back to that level and finish the retest but it has left a trap for repeat cycle perhaps. Watch the area for $0.00001045,” the analyst said.
Featured image from Watcher Guru, chart from Tradingview.com
