Shiba Inu (SHIB) on the Brink, Will It Add New Zero

Shiba Inu is waging an internal war as its price has continued to stay below key support levels, triggering bearish sentiments overall

According to data from CoinMarketCap, Shiba Inu (SHIB), the dog-themed memecoin, is trading at $0.00001602, a 3.22% drop in the past 24 hours. This significant dip for SHIB has far-reaching implications, as seen from the Exponential Moving Average (EMA) chart. A close look reveals that Shiba Inu’s price has dropped below a key support level.

Which EMA Level Tips Shiba Inu?

As an explainer, the EMA uses recent price data to calculate the average price of an asset over a specific period – say 100 days or 50 days. When calculating, price fluctuations are smoothened out. Therefore, the memecoin’s price must stay above the 100 EMA for a likely upward momentum for Shiba Inu. SHIB’s price of $0.00001602 is slightly above the 100 EMA.

Conversely, a drop below the EMA indicates a potential trend reversal and price weakening. This bearish scenario means the SHIB price may continue downward to the next support level. The 50 EMA support level is more critical because if the memecoin price refuses to rebound, it signals further risk to investors. 

The SHIB Army has watched as the price stayed above the 100 EMA in recent weeks. However, it remains to be seen how long the internal deflationary mechanism will aid growth. The community rallied recently to reduce the circulating supply by destroying a massive bag worth 1,884,288,401 SHIB. That sum came following the burn rate spike by 33,818.39%.

Whale Activity and Investor Sentiment

Despite this community push, investors’ concern for the memecoin continues. Stakeholders wish to see SHIB’s price well above the key resistance level to set the memecoin on a bullish path. A few days ago, SHIB KNIGHT’s bold prediction of a potential return to an All-Time High (ATH) for Shiba Inu sparked optimism among Shibizens.

Investors will keep their fingers crossed that the 360% increase in whale activities in the last seven days can also push the memecoin on a bullish path. This is critical as further drop and an additional zero in Shiba Inu’s price will trigger strong bearish sentiments.

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