Shiba Inu (SHIB) recently entered a specified trading range during the market downturn, creating new levels of support and resistance to monitor on the 1-hour timeframe.
Amidst the current cryptocurrency market decline, Shiba Inu has experienced a significant drop that has surpassed crucial support levels. One of the most important support levels to succumb was the 50-day EMA at $0.00002484, which was conquered by bears on April 28.
Shiba Inu Falls Below Trading Range
As the month comes to a close, SHIB has already declined by 22%, with no signs of the market downtrend halting. Most recently, TradingView chartist and market analyst Ahvaz identified this ongoing decline, confirming that Shiba Inu has now slipped below a significant area known as the trading range.
SHIB found support within this trading range, which spans from $0.00002496 to $0.00002588, starting from April 21. This support was established following a recovery campaign that resulted in a 14.43% gain on April 20, the day of the latest Bitcoin halving. However, as bears regained control, Shiba Inu has now relinquished most of these gains and has fallen below the trading range.
This decline occurred over the weekend when SHIB dropped below the psychological support level of $0.000025 on Saturday. Shiba Inu attempted to reenter the trading range the next day but encountered resistance in the $0.00002496 region, which had transitioned from support to resistance.
New Levels of Resistance and Support for SHIB
The new week brought additional bearish pressure, leading to a further decline below the trading range as SHIB dropped to the $0.000023 region for the first time in over a week. Amidst this downturn, one of the newly established support levels is at $0.00002310, providing strong defense against any drops towards the lows of April 18 at $0.00002231.
If the defense at $0.00002310 is breached, bulls can protect against steeper declines by holding steady at the support range between $0.00002214 and $0.00002260, as suggested by Ahvaz’s stop loss territory. Market bulls would need to defend this range to prevent a drop to the April 19 low at $0.00002082.
Overall, Shiba Inu has a solid but limited defense system around the $0.000021 level, where more than 46,180 addresses acquired 40.8 trillion SHIB tokens between $0.000019 and $0.000022, according to IntoTheBlock data. Breaking below this point would result in a decline below the structurally significant $0.000020 level.
On the other hand, with its current price at $0.00002400, Shiba Inu must surpass the Fibonacci 0.5 resistance at $0.00002454 to have a chance at recovery. Surpassing this level would bring SHIB closer to the 20-day EMA ($0.00002510) and back into the trading range.
If bulls leverage the growing accumulation trend to break this resistance, Ahvaz has set an ultimate target of $0.00003284, which aligns with previous targets set by other market observers around the $0.00003 level. Positive sentiment regarding ecosystem developments could contribute to this upward movement.
Disclaimer: This content is for informational purposes only and should not be considered financial advice. The opinions expressed in this article are solely those of the author and do not reflect the opinion of The Crypto Basic. Readers are advised to conduct their own research before making any investment decisions. The Crypto Basic is not responsible for any financial losses incurred.