"Failed to hold support"...Shiba Inu, is this rebound also a trick?

▲ Shiba Inu (SHIB)/ChatGPT Generated Image

Shiba Inu (SHIB) has approached a key breakout zone, but analysis suggests it could fall to $0.0000052 if selling pressure continues to thwart recovery attempts. On short-term charts, support and resistance levels are tightly intertwined, indicating entry into a compressed zone that will determine future direction.

The Crypto Basic reported on May 22 (local time) that crypto analyst GainMuse analyzed the formation of a critical technical zone on Shiba Inu's 2-hour chart. GainMuse observed that Shiba Inu has entered a high-pressure zone that could determine the market's next major direction.

According to GainMuse, the Shiba Inu 2-hour chart shows a total of 14 active price zones, including 9 support zones and 5 resistance lines. He described this structure as a clear decision zone. The presence of many active pivots was interpreted to mean that Shiba Inu is trading in a real pressure zone.

The chart also revealed two main structures: a wedge pattern and a broader descending channel. Shiba Inu initially traded within the wedge but later lost support and fell into a descending channel below $0.000006. The current chart shows Shiba Inu approaching another key reaction zone near the lower boundary of the descending channel.

GainMuse analyzed that Shiba Inu could further decline to $0.0000052 if sellers continue to reject recovery attempts. However, he noted that if buyers defend the current support zone and break through nearby resistance, Shiba Inu could quickly transition into a stronger momentum phase.

Shiba Inu is currently trading below $0.000006, following the overall bearish trend of the market. As of the time of writing, Shiba Inu's price is $0.000005839, having fallen by 8.42% over the past month and 6.93% over the past 7 days. However, it has seen a slight increase of 0.39% over the past 24 hours.

The bullish momentum seen earlier this month has already weakened. Shiba Inu once showed the potential to retest $0.000007, but after rising to $0.0000067 on May 11, it reversed direction and fell below $0.000006. Another analyst, SHIB KNIGHT, believes that Shiba Inu is preparing for the second phase of its recent rally and could aim for $0.0000080. Achieving this target would mean an approximately 37% increase from current levels, but uncertainty surrounding the possibility of a large short-term rally still remains.

*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*