Shiba Inu reaches important support level
Shiba Inu price may have hit the local low as the 200-day exponential moving average catches up with the asset on the way down to $0.000021.
According to TradingView, Shiba Inu is currently bouncing off a considerably strong support zone, which is reflected in the 200-day moving average—usually considered the last resort for assets in a downtrend.
Previously, SHIB had already fallen below the aforementioned support and immediately plunged another 14%. The breakthrough of the reversal came soon after, when the market was hit with sudden relief and the price of Shiba Inu soared over 60% within days.
As the chart suggests, the memetoken is now trying to rally with the moving average’s support that already helped SHIB to bounce by more than 10% since yesterday.
Is the Shiba Inu in a downtrend?
While the memetoken managed to show the market 60% growth in early February, the token failed to break through the resistance points that would mark a complete reversal of the trend.
The main indication that suggests Shiba Inu is in the rangebound is the placement of various mid and long-term moving averages. Whenever assets move in an uptrend, the 50-day moving average is placed high above the 200-day moving average, but in Shiba Inu’s case, the two lines are moving extremely close to each other and may cross if the asset falls below the support once again.
The “death cross” has never happened in Shib’s actual trading history, but if it does, it will most likely lead to the complete removal of the majority of the asset’s purchasing power. Such a dramatic scenario seems unlikely as Shiba Inu remains the second largest position on Ethereum whale addresses.
