Why the Shiba Inu price could lose 20% of market value this month

  • Shiba Inu price established new monthly lows wiping out all gains made since the end of July.
  • The 8-day exponential and 21-day simple moving averages collide while the SHIB price hovers below the indicators.
  • Invalidation of the bearish thesis remains a breach above summer's high at $0.00001800.

Shiba Inu price points could be established in the catalyst to an additional 20% plummet. 

Shiba Inu price edges near pain

Shiba Inu price is on every trader's radar as the bears have established new lows for the month of September. Currently, the self-proclaimed DOGE killer fluctuates beneath the recently breached 8-day exponential and 21-day simple moving averages. The moving averages are colliding, and if market conditions persist, a bearish death cross will occur. The cross could catalyze an additional 20% decline in aiming for the summertime lows at $0.00000978.

Shiba Inu price currently auctions at #0.00001185. The bears have successfully wiped out all gains since July 29th. The volume profile indicator demonstrates the bulls' failure to retaliate, as investors remain sidelined during the stair-stepping downtrend. 

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SHIB USDT 12-Hour Chart

Still, there is potential for Shiba Inu to reroute north for short-term gains before the breach of the summer lows. If the bulls can hurdle the previous moving averages and develop sustained support, an additional 13% rally towards the $0.00001400 resistance zone could take place in the short term. This countertrend scenario would not invalidate the bearish thesis, but traders should nonetheless be aware of the possibility. Invalidation of the bearish thesis targeting the summer lows at $0.0000978 remains a breach above the summer high at $0.00001800.

Thus' the safest invalidation of the downtrend thesis targeting $0.00000978 is a breach of the summertime high at $0.00001800. If the bulls can reconquer this resistance barrier, a buyers' frenzy could ensue, targeting the April 29th swing low at $0.00001839. Such a move would result in a 57% increase from the current Shiba Inu price. 

In the following video, our analysts deep dive into the price action of Shiba Inu, analyzing key levels of interest in the market. -FXStreet Team

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