Coin Edition -
- Nexo lists Shiba Inu (SHIB), now trading at $0.00002273 amid a price drop.
- SHIB’s market cap fell to $13.41B as trading volume dropped by 34.91%.
- Key support at $0.00002264 could signal reversal or further bearish decline.
Nexo, a prominent crypto platform based in Switzerland, recently announced the addition of Shiba Inu (SHIB) to its offerings. This integration highlights SHIB’s evolution from a simple memecoin to a significant community-driven project.
.@Shibtoken's $SHIB is live on Nexo! Let's explore. ⬇️Originally launched in August 2020 as a playful meme coin, $SHIB has rapidly evolved into a robust symbol of community empowerment.Inspired by the iconic Shiba Inu dog meme, the project has thrived with the help of its… pic.twitter.com/qchmWU8oNA— Nexo (@Nexo) May 7, 2024
Despite the positive development, SHIB’s price has experienced a notable decline in the past day. According to data from Coinstats, the price of SHIB has fallen by 4.44%, now trading at $0.00002273.
SHIB/USD 24-Hour Chart (Source: CoinStats)
This decrease is part of a broader downturn seen in its market cap, which dropped by 3.68%, now valued at approximately $13.41 billion. Consequently, SHIB now ranks as the 11th largest cryptocurrency by market capitalization.
The trading volume of SHIB also reflects the market’s current volatility, having decreased by 34.91% to $395,569,488 within the same period. This substantial drop in trading activity could signal a shift in investor sentiment following the listing announcement.
Bearish Phase Amid Testing of Key Support Level
Since May 4th, the SHIB token has been in a bearish phase, consistently dropping below key support levels on the one-hour chart. As of press time, the token is holding on to a critical support level at $0.00002264, indicating a potential downtrend unless market sentiment changes or external factors shift.
SHIB/USD 1-Hour Chart (Source: Tradingview)
A breach of this crucial support could lead to further declines, targeting liquidity below the current level in the bears’ range. This would indicate a more significant bearish trend, potentially pushing the SHIB token toward its May low for support.
Conversely, if the current support level remains strong, SHIB could see a boost toward resistance at $0.00002423. If this level is challenged, a breakout above it could propel the token to surpass the 78.6% Fibonacci retracement level, potentially reaching higher targets.
Is SHIB Primed for a Reversal?
From a technical perspective, the MACD indicator reveals -0.00000026, positioned beneath the zero axis, signaling a transient bearish trend. The MACD line is drifting downward yet remains proximate to the signal line, implying a potential shift if it surges above the signal. Meanwhile, the MACD histogram is nearing the zero mark, suggesting dwindling bearish sentiment and a prospective reversal.
SHIB/USD 1-Hour Chart (Source: Tradingview)
In tandem, the RSI is rising after hitting the oversold region, now positioned at 32.73. This suggests an imminent reversal as the RSI shows upward momentum. However, with the RSI line below the signal line, there remains room for slight bearish movement before a full price reversal takes place.
Despite the bearish outlook, investors are closely monitoring the critical support and resistance levels. The price direction in the coming days will reveal whether SHIB can overcome current market headwinds to regain upward momentum or fall further.
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