By Lucas Williams
After maintaining dropping trends since 16 August, SHIB/USD backs to its roots. The asset’s price movements had analysts predicting a visit to the 0.00000655 lows by the meme token. It is there now. The coin has most of its technical indicators pointing towards bearishness.
Decreasing investor interest accounted for Shiba Inu plunges. The themed cryptocurrency saw its TVL plummeting under $350 million by 26 August, down from over $1 billion in about one month. While writing these lines, SHIB has its TVL plunging further towards $342.14 million. That indicates that the coin sees investor outflows. Also, restricted influencer mentions take the dropping blame.
SHIB has lost all its gains since 7 August, holds slightly over the $0.00000655 support. The canine-themed assets trade at $0.00000670 now, dropping from the 16 August highs of $0.0000095.
Remember, SHIB/USD broke its consolidation above the support at $0.00000655 before starting another uptrend. For that reason, the token is in a break or make level. Meanwhile, increased drops will have to token inside a consolidation with a possibility to touch the $0.00000607 lows.
SHIB/USD Technical Outlook
The SHIB/USD four-hour price chart depicts price rebound from the support at $0.00000655. That is after testing the level. Meanwhile, the token remains trapped inside a descending trend-line. Combining the line with the support zone creates a descending triangle, suggesting an awaited extended bearish momentum.
Trade Idea and Analysis
If Shiba Inu forms a bullish trade gesture at the support near $0.00000655, it will provide a SHIB/USD buy opportunity. However, the asset will confirm a trade signal if it breaks over the descending triangle and trend-line. For now, SHIB TVL remains critical as it impacts the token’s price.
Meanwhile, buy entries can target the $0.00000707 and $0.00000751 high. Meanwhile, if the themed cryptocurrency fails to conquer the descending trend-line, it will head towards the $0.00000607 support.
The meme crypto market seems to lack the catalysts needed for upsurges. Dogecoin, the leading canine-themed crypto, battles with multiple obstacles as attempts to rally. With the correct sentiment, DOGE will rise, resulting in SHIB’s upside movements. However, the assets might have to depend on the broader market surges to explore higher levels.
We are happy to have you here. Stay tuned for the latest cryptocurrency news.