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Following Shiba Inu’s recent price slide, conflicting technical setups emerge, with price targets as high as $0.0001.
On Nov. 24, Shiba Inu (SHIB) fell even further as its attractiveness among the army of retail traders who helped it surge by more than 535 percent to a record high of $0.00008854 earlier this year faded.
After hitting an all-time high on Oct. 28, SHIB’s price plunged over 60%, indicating that traders have been actively locking in their Shiba Inu profits. That has further resulted in a substantial drop in SHIB’s benchmark instrument of SHIB/USDT volumes on Binance, underscoring a weak retail interest.
In doing so, SHIB’s reported market capitalization slipped to $21.30 billion from around $28.31 billion in just five days beginning on Friday.
Google’s keyword search data also showed a declining interest in the “Shiba Inu” markets, with its score on a 12-month timeframe dropping down from a perfect 100 to 20, much in line with SHIB’s 60% price correction.
Alex Krüger, an independent market analyst, referred to the dropping Google Trends for the keyword “Shiba Inu” as a sign that the token has been topping out — i.e., the beginning of its bear cycle.
More sell-off ahead?
The most recent round of selling in the SHIB market pulled prices below a significant upward sloping support (the velvet trendline), indicating the market’s potential for more losses.
As SHIB’s price trended lower, the Fibonacci retracement levels identified within the span of the graph, drawn from a swing low of $0.00000614 to a swing high of $0.00008933, presented potential entry and exit points, as seen in the chart below.
SHIB’s most recent price appears to have tested the 0.618 Fib line at $0.00003792 as an intermediate support level. SHIB’s ability to retest the upward sloping trendline as resistance, which corresponds with the 0.5 Fib line at $0.00004773, has increased following a bounce from the stated price floor.
A move below $0.00003792, on the other hand, might push SHIB’s price to the 0.786 Fib line at $0.00002394. While referring to a weekly SHIB chart, market analyst IncomeSharks also identified the area around $0.00002394 as a potential “buy zone.”
— IncomeSharks (@IncomeSharks) November 23, 2021
SHIB price bull flag setup
Offsetting the sell-off fears in the SHIB market is the occurrence of a potential bull flag setup.
In detail, SHIB’s price has been trending lower inside a downward sloping channel since topping out at $0.00008854 on Oct. 28. The channel more or less appears like a bull flag, a bullish continuation indicator that appears as a consolidation phase following a strong move higher, as shown in the chart below.
Traders typically set their upside objective at a length equal to the previous uptrend’s height (known as a flagpole), expecting the instrument to break above the flag range with stronger volumes. As a result, SHIB has the ability to rise as much as $0.00005100, the height of its flagpole.
The Shiba Inu token is now on its way to $0.00010000.