Crypto: Shiba Inu in free fall, failed rebound raises fears of the worst!

The meme token Shiba Inu (SHIB) is struggling to maintain its upward momentum. After failing to break through a major resistance zone, SHIB appears to be entering a correction phase, causing concerns among holders.

Correction in Sight for Shiba Inu After a Sharp Rejection at the EMA 50! 

According to a technical analysis by U.Today, Shiba Inu is at a critical inflection point. The cryptocurrency had recently climbed toward its 50-day exponential moving average (EMA), a key resistance level. However, SHIB faced a sharp rejection at this level, triggering a marked trend reversal.

This bearish pivot at the EMA 50 signals a loss of upward momentum for SHIB, amid a broader crypto market momentum loss.

The lethargic trading volume accompanying this reversal reflects the lack of engagement from traders, hesitant to take a stand in either direction. 

The market’s indecision is also evident in the relative strength index (RSI), which oscillates around 50, a neutral value signaling neither overbought nor oversold conditions. The RSI thus confirms a lack of clear direction for SHIB in the short term.

Support and Resistance Levels to Watch

SHIB’s failure at the EMA 50 highlights a lack of buying pressure in the crypto market overall. The meme token must now rely on immediate support at $0.000021 to prevent a more pronounced slide. 

A break below this floor could pave the way for a deeper correction, with potential support around $0.000012 at the lower limit of the channel.

Conversely, to return to an upward trend, SHIB must reclaim the EMA 50 and overcome the resistance zone around $0.00003, its recent peak. However, such a rebound would require a significant increase in participation and a change in market sentiment, both of which remain uncertain at this stage.

The upcoming sessions will be critical to gauge SHIB’s resilience. A strong bounce at the $0.000021 support is crucial to averting the risk of a more severe correction.