The last few days have been the worst for the Shiba Inu (SHIB). After a series of large-scale liquidations of long positions, the price of the popular meme-inspired cryptocurrency failed to return to the key support level around $0.0000283 for SHIB and settled below this level, first on a daily and then on a weekly candle. , it continued to fall during today’s trading session.
Now Shiba Inu token enthusiasts and crypto market participants in general are asking the question – where does the price of SHIB need to fall for this pain to end?
While few can predict the exact answer, which, given the volatility and unpredictability of the crypto market, is rather ungrateful, or rather comes closer to the word “crash,” some tools can provide at least a rough guide.
One such indicator is Bollinger Bands, which were developed by John Bollinger, an experienced trader in traditional financial markets, many years ago and are widely used to predict the prices of financial assets. The instrument is a moving average and two bands that are standard deviations from it: one down and one up.
Currently, the price of the Shiba Inu token is below the moving average, which means that it is gravitating towards the lower band, which on the daily chart is at $0.00002438 per SHIB, which is almost 10% below the current level.
Although deviations within this zone are possible, it can be assumed that the price of the Shiba Inu token will find its local bottom in this area. Or, in any case, the investment decision regarding the meme cryptocurrency will be made more consciously.
The scenario of the Shiba Inu token falling to the lower Bollinger Band will be canceled by returning above the moving average, i.e. an increase of more than 6.6% from the current level.
