Shiba Inu down nearly 40% in two weeks, but here’s what may be next
Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice
Bitcoin dropped below the $40.5k-level and saw a wick back up to $39k before some selling pressure over the past few days. This break of an important level for Bitcoin was followed by one of the more popular meme coins, Shiba Inu, dropping below an important support zone.
From that area, it has fallen by 37% based on the price at press time. The price always searches for liquidity, and for SHIB, this hunt for liquidity might see the price rise back to an area of supply before dropping once again.
Note that prices are expressed as 1000 times their current value for the sake of clear writing and fewer decimal places.
Source: SHIB/USDT on TradingView
Two sets of Fibonacci retracement levels have been plotted on the chart. The first, white one is based on SHIB’s move in October from $0.0233 to $0.0885. In November, SHIB slid below the 50% retracement level. The other set of retracement lines (yellow) are based on a more recent move from $0.0399 to $0.0254 in late December and early January. These levels have also been respected to some extent, making them levels we can watch out for.
At the time of writing, the price was below the 27.5% extension level for SHIB’s more recent move to the downside. The 27.5% and 61.8% extension levels are where the price can generally see some respite. However, SHIB did not see much demand.
The $0.024-area (red box) acted as demand in early October, but the price crashed right through in the recent sell-off event. This meant that large players could push the prices back to this area, tease a market structure break on lower timeframes before selling into the hands of
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