Shiba Inu (SHIB) is demonstrating signs of resilience by holding the support level at $0.0000106 amidst a general downturn in the cryptocurrency market.
SHIB Holds Key Support Level
Shiba Inu showed significant resilience on June 23, holding above the support level at $0.0000106 despite widespread losses in the crypto market. Over the past month, SHIB has lost nearly a quarter of its value. This support level has consistently absorbed selling pressure throughout the past year, which may lead to the creation of a double-bottom pattern on the weekly chart — commonly viewed as a bullish reversal indicator.
Basic Indicators and Price Action
The 50-day Simple Moving Average (SMA) is still trading above the current price, indicating further bearish momentum in the short term. For SHIB to gain additional traction, it needs to close a day above the 50-day SMA, which is currently around $0.0000168, to avoid a bearish trend. The Relative Strength Index (RSI) is currently at 38, indicating that the asset is nearing oversold territory. Additionally, Shiba Inu's funding rate has turned negative, reflecting a high volume of short positions that may lead to a short squeeze if the price begins to recover.
Outlook and Risks for Shiba Inu
While bulls aim to reclaim higher levels, analysts have cautioned that a loss below the $0.00001 support could result in a deeper decline. A break below this line would invalidate the double bottom and expose SHIB to further losses.
Shiba Inu continues to demonstrate resilience amid market instability. The support at $0.0000106 and the potential formation of a double-bottom pattern may signal a possible asset recovery, although risks remain high.
