Meme token passed first test on its way up
According to the daily chart of the Shiba Inu, the coin has successfully bounced off the local support level, but due to the lack of momentum, growth is negligible.
Trendline support
At press time, Shiba Inu is moving on the trendline support formed back in July. The line remains the last support for the token as the 50-day exponential and regular moving average could not hold under the large selling pressure that is coming from whales.
If we ignore the unexpectedly large price increase on August 15th, SHIB has remained in the rising price range since the end of June and has consistently moved within it. If the range sustains the current selling pressure, SHIB will retain the existing gains and move ahead.
Volume profiles suggest that the token is not receiving any support from large retail or institutional investors, which is one of the main reasons behind the anemic performance. With Bitcoin plunging below $20,000, we are once again seeing an outflow of funds.
What’s next for the Shiba Inu?
For now, the Shiba Inu is in dire need of some buy support from investors, as the coin is most likely to break if it holds up on any given time frame. Every test of the local support level is risky, as a failed bounce attempt will lead to a possible decline below $0.00001.
As we saw from the most recent 40% price spike, Shiba Inu does not need gigantic inflows of funds to make a big return on the market. Even the slightest buying activity that might come from whales will lead to strong growth.
As of press time, the Shiba Inu is trading at $0.0000012 over the past 24 hours and is up about 2% in value.
