Shiba Inu Drops Below Litecoin

Shiba Inu has been displaying strength since March 8 recording higher lows amid relatively positive fundamentals. Despite this, SHIB appears to be sidelined at the moment with the emergence of another meme coin,  PEPE.

Shiba Inu price has lost more than 8% of its value in the last 48 days, breaching key support levels in the process. At the time of writing, SHIB was exchanging hands at $0.00001059, down 3% on the day. Its 24-hour trading volume was also trending downward, dropping 31% to $225 million, which signals decreasing investor interest in the token.

As a result, SHIB has lost nearly $600 million of its market cap over a span of 72 hours, bringing it to around $6.244 billion, according to data from CoinMarketCap. The more than 8% losses registered by SHIB over the same timeframe have caused the meme coin to lose its 12th spot in top cryptos as Litecoin rises above it.

Shiba Inu Price At Risk Of 8% More Declines

Shiba Inu’s recent downtrend saw it lose a key support area around $0.00001097 on Wednesday, which was embraced by both the 50-day Simple Moving Average (SMA) and the support line of an ascending triangle. Such a move confirmed a decisive breakout on the downside with investors staring at more losses.

At the moment, SHIB is trading at the 200-day SMA, which it must hold to avoid dropping lower. However, a daily candlestick close below the 200-day SMA would initiate massive sell orders that would see SHIB drop to seek solace from the $0.00001035 major support level.

Immense selling could push Shiba Inu lower to revisit the $0.000010 psychological level or the March 9 swing low at $0.00000966. This would represent an 8.79% descent from the current price.

SHIB/USD Daily Chart

Shiba Inu

The downward outlook is supported by the fact the price has dropped below a bullish chart pattern, nullifying any possibility of an uptrend in the near term. In addition, Shiba Inu faced stiff resistance in its upward path.

These were supplier congestion areas where the 50-day SMA sat at $0.00001091, the triangle’s resistance line at $0.00001135, and the 100-day SMA at $0.00001161. This is a suggestion that the path with the least resistance is downward.

Moreover, the Relative Strength Index (RSI) was moving downward as shown on the daily chart above. Its value at 41 in the negative region reinforced the bears’ grip on SHIB.

On the upside, SHIB could start rising if it held above the 200-day SMA at $0.00001060. Buying pressure from this demand zone would see SHIB rise higher to confront resistance from the 50-day SMA or the triangle’s ascending line.

A decisive move upward would be achieved once Shiba Inu produces a candlestick close above the triangle’s resistance line or the 100-day SMA. Note that the last attempt to rise above this supply zone turned out to be a fakeout. Rising above the 100-day SMA would clear the path for Shiba Inu’s rise to $0.000013.