If you are familiar with SHIB, you may have noticed that it is not performing well lately.
What could be the cause of this?
SHIB lost almost 6% of its price during the past seven days. It’s been tough. The current level of support lies at $0.000014 which is very low. So what does that mean?
In essence, support levels are points where prices might cease to drop since buyers find them attractive enough to buy. However, before we reach that point of support, things look down for SHIB.
So why is this happening?
Well in March SHIB was doing awesome. The buying pressure was high, meaning a lot of people were buying SHIB and hence the price rose. Then June came and everything flipped on its head. Sellers took over and the price began to go down. Ever since then, it has followed a slow but sure downward trajectory. You know how sometimes things just go downhill and it feels like there’s no stopping it? That's kind of what's happening with SHIB right now.
Now, let’s see the technical aspect of this. There is something called MACD indicator that I need to talk about. Don’t worry, it isn’t that complex. The MACD just helps us know if prices are likely to move higher or lower. For SHIB, the MACD has been indicating lower lows, and as such chances are that the price will continue decreasing rather than reversing up again. It can be like releasing a ball that rolls down the hill gaining speed with each passing moment.
The biggest thing you must keep in mind is that unless buyers start stepping up and challenging resistance around $0.000018, the price could slide further southwards. These levels of resistance work like barriers where price often finds difficulty going past them. However, if there can be enough buying pressure to break above $0.000018 then we might witness some things change here too. But until then, things are looking pretty bearish (i.e., more selling than buying).
So what?
Frankly, nothing other than waiting for it to happen eventually… If you own SHIB coins, you may have to sit tight while watching whether buyers will return to the market or not. It’s like waiting for the the rain to stop so that the sun can shine again out there; it is a matter of time and not much effort can change this course of events earlier than usual.
However, if you’re planning to buy SHIB, it may be worthwhile to wait until we hit that support level at $0.000014. Buyers could start coming in and lifting the price again there. Like waiting for a sale before you buy something expensive – that way, you get a better deal.
Anyway, I hope this helps clear up some of what is happening with Shiba Inu (SHIB) currently. Certainly, it’s hard times but with some patience maybe things will turn around. Just watch those support and resistance levels and you will be able to make better decisions.