How Further Down Can the Price of Shiba Token Get
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Shiba token price has been falling since hitting an all-time high last month. This has left investors wondering when this bear momentum is likely to stop.
There are a few reasons why this is necessary.
- To enable the buyers to join the market
- It will inform the short-sellers when to exit the market and take profit.
There are always two kinds of investors in the market. Those that trade on the market to rise and those hoping the market to fall.
Recently, bears have been in control with the coin losing at least 50% of its peak value. To understand how lower the price will get, there are various factors you need to evaluate. These include both the price action and fundamental analysis.
Price Action
This involves analysis of the price movement to identify areas that could trigger a reversal or a trend continuation.
Some of these include the resistance and support levels, oversold and overbought positions, and candlestick patterns. Shiba token is approaching a key support zone of $0.000042. This will be critical because it has caused reversal before.
AS this will be the second time the price is touching this level, it could indicate the end of the price falling.
Currently, the coin is trading at an average of $0.000045. This means it is getting closer to the support zone. However, if it doesn’t reverse at this level, the price could go lower to the $0.000038 level.
This is the secondary low if the price doesn’t respond at the initial Support zone.
Oversold Position
Most indicators are showing the coin is oversold. These include both the RSI and the Stochastic indicator.
This shows selling momentum is starting to decline and could result in a rise at any time. Although the indicators’ accuracy isn’t 100%, they influence the market trading decisions.
What Needs to Happen for Shiba Inu Token Price to get to $0.01
As an example, experienced traders would not short an oversold asset. This is investment suicide. At this level, the coin’s downward movement is losing strength. These are early signs of a market that is about to reverse.
Fundamental Analysis
This analysis takes care of key factors that could affect the market but are not part of the price action. Some of these include;
- Inflation levels
- Government regulations
- Economy performance
Sampling the inflation element, it is rising forcing investors to look for safer assets in defense.
Inflation has a huge impact on the normal fiat currencies. To mitigate this, some investors are looking to cryptocurrencies such as Shiba token for hedging.
As the levels rise, there will likely be more demand for the coin and this could trigger its price to rise. This just confirms its fall could reverse any time soon.
Future of the Shiba Token
Shiba, just like its peers is a highly volatile asset. This can be seen from the recent price rallies. It needs the right trigger to reverse and even multiply the price.
These assets will always experience rapid price movement in both directions. Most indicators show a reversal is near. This could prevent any further downward movement.
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