SHIB continued to decline on November 24th as it became less attractive to retailers. This swarm helped the price jump more than 535% to a record high of $ 0.00008854 earlier this year.
The price is down nearly 60% after hitting the aforementioned all-time high on October 28, suggesting that traders are intensifying profit-taking. This further resulted in a significant drop in volume at Binance (the SHIB benchmark), underscoring the lower level of retail interest.
Accordingly, SHIB’s market cap fell from about $ 28.31 billion to $ 21.3 billion in just five days from Friday.
Daily SHIB / USDT Price Chart | Source: TradingView
Google search data too shows Interest in the “Shiba Inu” market is growing. In particular, the 12 month timeframe score dropped from 100 to 20, which is a price correction of 60%.
Alex Krüger, independent market analyst, has mention A decrease in search volume for the keyword “Shiba Inu” on Google Trends is a sign that the token is reaching its peak – i.e. the beginning of a bear cycle.
TInternet search for “Shiba Inu” | Source: Google Trends
The recent sell-off in the SHIB market has pushed the price below the important upward sloping support (red trendline) making further declines likely.
For example, the levels identified in the area of the Fib Retracement Chart, drawn from the swing low of $ 0.00000614 to the swing high of $ 0.00008933, offer potential entry and exit points when the price of the SHIB falls below is trending as shown in the graph below.
Daily SHIB / USDT price chart and Fib retracement level | Source: TradingView
It looks like SHIB tested the 0.618 Fib line at $ 0.00003792 as preliminary support. The rebound from the above price floor increases the potential for SHIB to retest the upward sloping trendline as resistance that coincides with the 0.5 fib at $ 0.0004773.
Conversely, a move below $ 0.00003792 could push the price to the 0.786 Fib line at $ 0.0002394. Market analyst IncomeSharks also marks the $ 0.0002394 area as a potential “buy zone” on the weekly SHIB chart.
– Income Sharks (@IncomeSharks) November 23, 2021
“OLDwe will see Touch price weekly supertrend support. This is the place I want to go back to if possible“.
Flag setting cow
The sell-off in the SHIB market is offset by the emergence of a potential bull flag.
Specifically, price has fallen within a downward sloping channel since peaking at $ 0.00008854 on Oct 28. The channel looks like a bull flag, signals a bullish continuation and appears as a consolidation phase after a strong upward movement.
Daily SHIB / USDT price chart and Flag setting cow | Source: TradingView
Typically, traders set a bullish target with a length equal to the height of the previous uptrend (flagpole) and expect the price to break above the flag span as volume increases. Hence, SHIB is likely to rise by $ 0.000051 (the height of the flagpole). In other words, the SHIB token is on its way to $ 0.0001.
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According to Cointelegraph