Recently, investors and traders have noticed that Shiba Inu (SHIB) is currently resting on a strong support level around $0.00001, which has sparked speculation about the meme coin’s probable future movements. The 200 EMA is above the 50 EMA, while the price of SHIB is below the 50 EMA, therefore market players will be keenly observing any changes over the next several days.
A bounce off the support level and a continuation of the uptrend are two potential outcomes for SHIB. The price of SHIB has repeatedly bounced off the support at $0.00001, indicating that it is a solid foundation.
Increased purchasing activity and a potential reversal of the recent decline might be seen if the RSI, which is now at 40, continues to move higher and the trading volume increases. In this scenario, traders can search for a chance to open long positions in the hope of making more money.
A period of consolidation with the price remaining in a constrained range at the $0.00001 support level is another scenario for SHIB. If the RSI remains consistent at the 40 level and trade volume remains moderately low, suggesting a lack of significant buying or selling pressure, this scenario may occur.
In this scenario, traders can decide to refrain from entering any transactions in favour of waiting for a more certain indication of the coin’s future trajectory. It is important to keep in mind that episodes of consolidation can linger for a long time until a clear breakout takes place, either to the upside or negative.
The final scenario concerns a breach of the $0.00001 support level, which would result in additional price drops for SHIB. This may occur if the sell-side trade volume rises and the RSI keeps falling, indicating negative momentum.
