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With Shiba Inu plummeting below the $0.00001 price mark this week, here are key support and resistance levels that could determine SHIB’s movement in the coming days.
Shiba Inu (SHIB) has experienced massive price swings in recent times. This week, the canine-themed cryptocurrency plunged below the $0.00001 price level.
Recall that Shiba Inu was trading around $0.00001090 at the beginning of the year. However, the token experienced a major downturn on January 3, following reports that the SEC would deny all applications for spot Bitcoin exchange-traded funds (ETF).
The FUD (Fear, Uncertainty, & Doubt) pushed SHIB to around $0.00000930, with several investors registering heavy losses. At press time, SHIB was changing hands at $0.00000970, down 1.4% over the past 24 hours.
Shiba Inu Key Support and Resistance Levels
Following the massive volatility that rocked the crypto market, the price of Shiba Inu broke through the 50 EMA. Market analysts consider this type of move to be a bearish trend.
Looking at Shiba Inu’s price chart, it is evident that the canine-themed token could soon hit an important support level. Interestingly, Shiba Inu might initiate a rebound if it sees substantial support and the appropriate trading volume.
Notably, Shiba Inu’s current support level sits around the $0.00000950 mark. Staying above this level could pave the way for a potential recovery move.
On the contrary, if SHIB plunges below the $0.00000950 level, it could result in more sell-offs, thus causing the price to decline further.
At the moment, Shiba Inu’s resistance levels currently sit near $0.00001000. If this level is breached upward, the canine-themed token could usher in an optimistic trend reversal.
Potential for a Major Recovery
In the meantime, Shiba Inu’s on-chain activities suggest that positive developments are happening behind the scenes. Cryptocurrency whales are taking advantage of Shiba Inu’s low price to accumulate the asset.
Although Shiba Inu has experienced massive corrections this week, SHIB is currently staying above key technical support levels. Hence, there is a potential for an imminent recovery that could take the asset above $0.00001 and beyond.
A crucial factor that can make this a reality is Shibarium-powered burns. As reported earlier, the Shibarium team hopes to automate burns on Shibarium starting this month, with many speculating that the portal could burn up to 9.25T SHIB monthly.
Furthermore, altcoins like Shiba Inu could benefit from the potential approval of multiple spot Bitcoin ETF applications.