Shiba Inu is trading at $0.0000128, experiencing a sudden pullback after a bullish start to the week. Amid an increase in bearish momentum, SHIB extends the correction from the weekly high of $0.00001344, exhausting weekly gains and retesting the crucial support level of $0.00001266 (swing low from early May).
Currently, the support level acts as a line of defense, preventing a drop close to 8% to $0.00001168 if breached.
Supporting the downside risk, the MACD and its signal line fall deeper into negative territory while the RSI at 39 approaches the oversold threshold. Therefore, the momentum indicators suggest a bearish outlook.
However, if SHIB bounces from the crucial support level, the 50-day EMA at $0.00001382 becomes the key resistance level.