The cryptocurrency market was a sea of red on Saturday after a crippled Bitcoin immobilized most alts from generating any positive returns. The second-largest meme coin by market cap- Shiba Inu, was at the receiving end of a ghastly sell-off.
At press time, SHIB traded at $0.00001893, down by 23% over the last 24 hours. What was more concerning was the fact that SHIB faced a dearth of support levels, decreasing the chances of an immediate rebound.
Shiba Inu 4-hour time frame
Shiba Inu was trading in unfamiliar territory after slipping below a sell-stop pocket between $0.00002478-$0.00002060. With no immediate fallbacks to rely on, bears were expected to rip through SHIB’s cracks until a support region is established. The closest logical defense rested between $0.00001522-$0.00001212 – an area that allowed bulls to manage a round of sell pressure during SHIB’s October 2021 rally.
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Bear in mind that SHIB was marked by extremities and these support areas carried low probabilities of a reversal. Instead, a more sound defense stood at $0.0000954. The area reversed roles after functioning as a strong supply zone during June-October 2021.
Meanwhile, there were almost zero bullish takeaways and any long setups should maintain a tight stop-loss.
Indicators
SHIB’s plummet dragged its 4-hour metrics to monthly lows. The Awesome Oscillator fell sharply below its half-line and traded at its lowest point since 7 December 2021. The index would most likely maintain its decline due to the lack of any buy signals.
The RSI pushed deep into oversold territory and hit a 4-month low. Now even though the RSI was trading in an area of reversal, it should not be taken at face value as the market was driven by FUD.
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Conclusion
Shorting is the safest trading strategy at the moment. Take-profits can be set at $0.00001522, marking a quick 19% gain from SHIB’s press-time level. Those looking for a safe spot for longs should play the waiting game as SHIB could drop lower if the price slips below $0.00001212.