Shiba Inu faced a massive rejection without even facing any substantial resistance levels. Losing more than 3% on the recent daily candle might create a condition where the market reverses sooner than expected. In light of the fact that SHIB was trading just above important moving averages, specifically the 50-day EMA before rapidly dropping back below it, the decline becomes even more worrisome.
This kind of quick rejection raises the possibility that the rally was driven more by momentum than by underlying support. SHIB had constructed a modest upward structure off the $0.00001130 support level, according to a closer examination of the chart. However, it lacked a significant volume surge or follow-through buying to push it through crucial resistance zones around $0.00001450 and beyond.
A clear picture is painted by the current price action: SHIB has not been able to take advantage of the favorable conditions on the larger cryptocurrency market. Concern that Shiba Inu’s movement has been largely riding the coattails of macro market momentum has grown as a result of this.
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SHIB’s brief rise was probably aided by Bitcoin’s robust spike and the recovery of large-cap altcoins. Nevertheless, SHIB’s intrinsic lack of upside drivers is coming to light now that the general enthusiasm has somewhat subsided. Going forward, the 50 EMA at $0.00001251 is a crucial level to keep an eye on. It is very probable that SHIB will decline back to the $0.00001130 support if it loses this level.
However, in order to confirm a bullish continuation any recovery would need to be accompanied by significant buying pressure and a clear push through $0.00001450. SHIB seems exposed. Without a special driver or fresh surge in demand, its chances of gaining another significant advantage are still very much reliant on the mood of the cryptocurrency market as a whole, which is risky for any asset hoping for long-term growth.
