Shiba Inu Nears Critical Price Point: Can It Avoid Further Decline? – BitRss

Shiba Inu (SHIB) has reached a crucial support level that could determine its short-term price trajectory. Currently, the token is trading just above the 100-day Exponential Moving Average (EMA) on the daily chart. This technical indicator has provided essential support in recent weeks. However, SHIB may face further price declines if it fails to hold above this level.

Risk of Further Decline If 100 EMA Is Breached

The 100 EMA is seen as a significant level, and breaking below it could trigger additional downward movement. The next level of support is the 50-day EMA, but this indicator is often less reliable in bearish market conditions. 

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The 50 EMA is more of a temporary stop than a solid price floor, meaning it may not provide the stability needed to prevent further declines. Should SHIB fall below the 100 EMA, there is a strong possibility of a rapid drop toward the 50 EMA. 

_{SHIB/USDT Chart by TradingView}

Given the current state of the market and SHIB’s technical setup, this move could happen swiftly, putting additional pressure on the token.

Impact of Price Falling Below $0.00001**

A more alarming scenario for SHIB holders is the potential breach of both the 100 EMA and the 50 EMA. This could lead to a more significant price drop, potentially pushing SHIB’s price below the crucial psychological level of $0.00001. Adding another zero to SHIB’s price would likely fuel bearish sentiment, making recovery in the short term much harder.

Related article: Shiba Inu Whale Activity Surges: Is a Major Price Move on the Horizon?

If SHIB dips below this threshold, it could signal a further price decline. Investors may become more cautious, leading to increased selling pressure. High trading volumes during recent declines suggest that bearish momentum is gaining strength. 

Earlier, whale activity drove some price movement, but the recent surge in trading volumes may indicate profit-taking, further increasing the chances of a price drop.

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