Shiba Inu Price Prediction: SHIB Bears Chase Breakdown To $0.0000058
- Shiba Inu price loses another crucial support at the 200 SMA as declines to $0.0000058 linger.
- Death cross pattern on the four-hour chart adds credence to the bearish pressure.
Shiba Inu closed the day under $0.00000752 following an extended breakdown from highs around $0.0000095. Overhead pressure as other tentative support areas crumbled, including the 200 Simple Moving Average (SMA) on the four-hour chart.
At the time of writing, SHIB teeters at $0.00000742 while bulls battle a stubborn hurdle at $0.0000075. Failing to trade above this zone will limit the bulls' effort while enhancing Shiba Inu's bearish grip.
How far will Shiba Inu price downtrend go?
The four-hour chart shows the formation of a death cross pattern. This bearish formation comes into the picture when a short-term moving average crosses above the longer-term moving average.
For instance, the Shiba Inu chart shows the 50 SMA crossing under the 100 SMA. It implies that SHIB will settle below the cross-over position and perhaps extend the downtrend to $0.0000058.
While the death cross does not signify exit positions or targets, it tells the trader to be on the lookout for exit points.
The same sell signal has been reinforced by the Moving Average Convergence Divergence (MACD) indicator. This trend following tool also calculates the momentum of the asset, thus sending bearish or bullish signals.
As the 12-day exponential moving average (EMA) crossed below 26-day EMA, odds for another leg down crossed increased. Moreover, the MACD has July 7 been stuck under the mean line, adding credibility to the bearish outlook.
SHIB/USD four-hour chart
The Parabolic SAR has a massive bearish call that has been sustained since July 8. Another daily close above Shiba Inu price may worsen the technical picture and perhaps encourage more sellers to join the market. It is worth watching the distance between the dots because losses will gain momentum if it gets more expansive.
SHIB/USD 12-hour chart
Looking at the other side of the fence
The TD Sequential indicator has flashed a massive bull signal in the form of a red nine candlestick. This infers that bulls are gaining traction while bearish advances are weakened. If validated, Shiba Inu will begin its recovery supported by a surge in buy orders. A break above $0.000008 could help solidify the bullish leg toward $0.00001.