shibainu robinhood
Crypto News

Shiba Inu Price Analysis & Prediction (May 23rd) – SHIB Enters Oversold Zone Following $3 Billion Cut in Market Cap

Since the price rolled back near the previous bottom last week, Shiba Inu (SHIB) remains indecisive and has shown no sort of recovery. It looks extremely oversold after depreciating by roughly 24% in the past month.

A few meme coins like Pepe and Floki have gained a lot of traction during this bearish correctional phase, returning a massive profit within a short period. Shiba, on the other hand, continued to lose momentum.

Shiba paused bearish after testing the $0.0000083 level last week. The extreme drop in the selling volume saw the price action move from little-to-no volatility, subjecting trading to an indecisive state ever since.

However, looking back from where the price started to fall in February, Shiba cracked several support levels along the way with a total of 45% drop in three months. Apart from that, almost $3 billion has been wiped away from its market cap during that period.

This huge loss brought the second-largest meme coin by market cap into an oversold zone as it remained stuck around $0.0000087. It hinted no sort of recovery yet. A notable move from its current trade zone would determine whether the trend will reverse or continue.

SHIB Key Levels To Watch

shiba inu price analysis prediction
Source: Tradingview

From a technical perspective, Shiba appeared to be gathering momentum for the next move. The bears are still in control, though. 

If the price drops below the holding $0.00000837 support level, the last defence line for the bulls would be the $0.0000078 support level, marked as a bottom in 2022. A new one may come around $0.000007 if that support collapses.

For a bullish reversal, the cryptocurrency must first reclaim the $0.00000936 resistance level with the diagonal resistance line. After that, the $0.0000105 level is next, followed by the $0.0000117 and $0.0000129 resistance levels.

Key Resistance Levels: $0.00000936, $0.0000105, $0.0000117

Key Support Levels: $0.00000837, $0.0000078, $0.000007

  • Spot Price: $0.0000086
  • Trend: Bearish
  • Volatility: Low

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

Leave a Comment

Your email address will not be published. Required fields are marked *

*