Shiba Inu (SHIB) slid further on November 24 as an appeal lodged by an army of retailers fizzled out helping the company climb more than 535% to a record $0.00008854 earlier this year.
SHIB price is down nearly 60% since the aforementioned all-time high on October 28, indicating that traders are taking active profits from Shiba Inu. This also led to a significant drop in the SHIB/USDT volume index on Binance, confirming weak retail interest.
Meanwhile, SHIB’s market capitalization fell to $21.30 billion from $28.31 billion in just five days on Friday.
SHIB/USDT daily price chart. Source: TradingView
Google keyword research data also showed a decline in interest in the Shiba Inu markets, with the 12-month score dropping from 100 to 20, largely in line with SHIB’s 60% price correction.
Alex Kruger, an independent market analyst, described the drop in the keyword “shiba-inu” on Google Trends as a sign that the coin has reached a top, that is, the beginning of a downward cycle.
The Internet searches for the keyword “Shiba Inu”. Source: Google Trends.
More sales to come?
The recent selling attack in the SHIB market pushed prices below the critical ascending support (Velvet Trend Line), creating the potential for further declines.
For example, the levels identified in the Fibonacci retracement chart, plotted from the swing low of $0.0000614 to the pivot high of $0.00008933, provided potential entry and exit points as the SHIB price fell, as shown in the chart below. …
SHIB/USDT daily price chart with Fibonacci retracement levels. Source: TradingView
It appears that the recent SHIB price tested the 0.618 Fibonacci line at $0.00003792 as a temporary support level. A pullback from the specified minimum price increased the possibility of a retest of the ascending trend line as resistance, which coincides with the 0.5 Fibonacci line at $0.00004773.
On the contrary, a move below 0.00003792 could risk sending SHIB price towards the 0.786 Fib line to $0.00002394. Market analyst IncomeSharks also highlighted the area around $0.00002394 as a potential “buy zone”, citing SHIB’s weekly chart.
Placing a bullish SHIB price flag
To offset the fear of selling in the SHIB market, a potential bullish flag setup could emerge.
On the subject: Shiba Inu is in danger of an “upper signal” because SHIB price is losing 50% in 3 weeks.
In detail, SHIB price is trending lower in the descending channel since it peaked at $0.00008854 on Oct 28. The channel more or less resembles a bullish flag, which is a bullish continuation indicator that appears as a consolidation phase after a sharp rally, as shown in the chart below.
SHIB/USDT daily price chart with a bullish flag set. Source: TradingView
Usually, traders place their target up with a length equal to the height of the previous trend (called the flagpole), and they expect the instrument to break the higher volume flag area. As a result, SHIB can grow by $0.00005100, that is, to the height of the flagpole.
This puts the Shiba Inu token on track to $0.000100,000.