Shiba Inu retraces back to breakout support

  • Shiba Inu token rallied to $0.000017 as risk-on sentiment entered markets

  • The token trades at support after losing grip of previous gains 

  • Crypto sentiment remains weak, but Shiba Inu could take a u-turn to the upside 

Whether Shiba Inu SHIB/USD has returned to the bear market is a question hard to answer. However, one sure thing is that Shiba Inu maintains key technical levels. Buyers could be about to take it higher after the latest slowdown. 

Shiba Inu is one of the cryptocurrencies that returned massively recently at the height of meme-rally. However, the token is back to the drawing board, with losses in the last seven days climbing to 17%. Most other cryptocurrencies are already in the red indicating widespread corrections. 

Shiba Inu falls back to support zone as meme rally ends

Source – TradingView

The current SHIB price coincides with support at $0.00001242. That is the level at the price broke and became bullish at the back of the renewed meme-token rally. We can see that the price shows some indecision after the latest losses. Bulls are rejecting the downward pressure, a major indicator that demand is strong for the meme token. 

The momentum indicator is showing a bearish price move. We remain optimistic that if SHIB maintains the support zone, the MACD indicator could turn bullish.

Concluding thoughts

While crypto sentiment remains weak, SHIB has maintained key support. The bear pressure is weakening as the price shows indecision at $0.00001242. A potential recovery is possible if the price maintains its level. Investors should watch price action and consider trades if sentiment improves.

If SHIB loses grip of the support, bears will take control. That could see the price trade back to $0.000010. The next days’ price action will dictate the potential direction for SHIB.