Shiba Inu's Price Action: Could We See a Dip to $0.000010?
As Bitcoin surges past $80,000, meme coins have also seen a slight rebound, with Shiba Inu leading the charge along with Dogecoin. The combined market value of these meme currencies reached an impressive $42.19 billion within 24 hours. Despite the positive momentum, Shiba Inu is facing challenges breaking through its key resistance level of $0.00001150. Will it continue to struggle or experience a post-retest correction?
Shiba Inu Faces Key Support at $0.000010
Shiba Inu's price has recently slipped below the $0.00001150 support level on the daily chart, closely aligning with our previous prediction. The drop took it near the 1.272 Fibonacci retracement level at $0.00001000, which could act as a critical support point. After testing this zone, Shiba Inu saw a brief V-shaped recovery but is now encountering downward pressure at higher levels, hovering at $0.00001210, which marks a 3% drop in just 8 hours.
Bearish Signals and Potential Adjustments Ahead
The technical indicators are raising some red flags for Shiba Inu. The 100 and 200 SMA lines may cross bearishly, signaling a potential further decline if the trend persists. Additionally, the MACD and signal line suggest that the momentum is weakening, indicating that the current bullish attempt may be short-lived unless it can regain stronger buying interest.
Large Holder Netflow and Downside Risk
Data from IntoTheBlock shows a negative netflow from large Shiba Inu holders, which is contributing to the increased selling pressure. As of April 7, the outflow was a significant -256.99 billion SHIB tokens, signaling that major holders are cashing out. This trend could exacerbate the bearish correction, pushing Shiba Inu towards its $0.000010 target, and potentially lower to $0.00000912 if the 1.618 Fibonacci level breaks. In the worst-case scenario, this suggests a downside risk of about 20%.