Memecoins have been in the spotlight recently following the stunning price-performance displayed by PepeCoin (PEPE) between April and May. Meanwhile, other top memecoins including Shiba Inu (SHIB) are yet to stage any significant rallies this year. Could this period be a good entry point on SHIB?
Shiba Inu (SHIB) in the Market
Despite the many positive developments in the Shiba Inu ecosystem such as Shibarium and the recent AAA CertiK security rating, the world’s second most popular decentralized meme token SHIB has been appearing more bearish than bullish on its price chart.
The price of the popular canine-themed crypto asset Shiba Inu (SHIB) seems to be at a critical level as a breakout above the prevailing downtrend line could trigger a rally of about 10% or more in the short-term. But on the other hand, a breakout below its current support level at the time of analysis ($0.0000087) could push the price of SHIB below $0.000008.
In particular, SHIB price has been in a downward trajectory since mid-April after the memecoin rallied from $0.0000092 in March and eventually touched the $0.000012 level.
A close look at SHIB’s price chart in a one-day timeframe showed that the crypto asset is at a critical price point with its 3-day price movement seen along the 21-Day Moving Average (MA) line. SHIB is also trying to maintain its support level of $0.0000087 at the time of analysis.
SHIB traders have their eyes glued to this critical support level and the 21-Day moving average as a close above the 21DMA line would likely cause the decentralized meme token to launch into an uptrend. This uptrend which could take SHIB price to $0.0000092 or perhaps $0.00000097 is also dependent on the bulls protecting the $0.0000087 support level.
Conversely, it could be a nightmare for SHIB investors if the meme token stages a breakout below this 21-Day moving average line or fails to consolidate above $0.0000087. If this happens, there is a possibility that the asset’s price could plummet massively below $0.000008. However, there is no certainty that things will pan out as forecasted.