2022-6-7 00:47 |
Shiba Inu is currently trading sideways along a declining trend line. The coin has also managed to consolidate above an important support zone, but upside momentum has been very limited. SHIB is staring at a brutal sell-off in the coming weeks, but this could be avoided if certain conditions in the market materialize.
Key Points –
SHIB has finished a consolidation phase without really breaking out.
This shows weakness, and the token could fall below the $0.0000101 support.
The coin will phase a 40% wipeout from its current price if this happens.
Data Source: TradingView
How can SHIB avoid this decline?It’s very difficult right now to see any decisive bullish run for SHIB. The market in general has not favored meme coins. In fact, after crashing in May, SHIB has recovered very modestly compared to other coins. It has also traded sideways for the past two weeks along a declining trend line.
This suggests that there is no momentum for any real bull run. So, to avoid a sell-off, the meme coin needs to hold the $0.0000101 support. So far, SHIB is slightly above this, and we have not seen any bear pressure.
However, as market conditions change, a dip below$0.0000101 could come in the next week or so. When this happens, it will trigger a major sell-off that could push SHIB lower by nearly 40%. Recovery from this fall may also not be as quick as we want.
What Happens to SHIB investors?It’s just a wait and see game for now. The biggest test will be how long the coin holds off bears above the $0.0000101.
If indeed SHIB is able to close the week above this price, then bulls can take a breather. But still, upward momentum for SHIB is highly limited at the moment.
The post How can Shiba Inu avert a brutal sell-off in the coming weeks? appeared first on CoinJournal.
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