With investor sentiment in crypto taking a more risk-off approach in the last 6 months, meme coins like Shiba Inu (SHIB) have suffered the most. In fact, SHIB has been on a long-term downward trajectory for most parts of 2022 and continues to face massive pressure. Here is what you need to know:
- SHIB tried to hold the support at $0.0000094 for almost 8 months.
- The coin temporarily fell below this price last week and fell another 50% as a result.
- But a recent rally pushed SHIB back above $0.0000094.
How long can SHIB hold on?
It is clear that downside risks below $0.0000094 are huge. In fact, the one time SHIB failed to hold this support zone, the coin went on to lose nearly 50% of its value in an apparent crash. So far, the meme coin has recovered and appears to be pushing further above $0.0000094.
However, we don’t think SHIB has what it takes to hold bears back any longer. In fact, looking at the RSI momentum indicator, the coin meme looks poised for a strong correction. SHIB has also failed to generate sufficient demand, especially in a market where investors remain extremely fearful.
With these two factors, we expect SHIB to struggle over the next week, and eventually, $0.0000094 will be lost. After that, the meme coin will likely spiral downwards for another 50 -70% before we see any serious trend reversal.
Should you own or sell SHIB?
There is no doubt that crypto is now a seller’s market. Investors are cashing in and as a result, market volatility is expected to remain very high.
If you want to get out of SHIB, this would be the time to do it. However, for those who are in it for the long term, just wait for the meme coin to dip below $0.0000094 and accumulate once again.
