As the market cap of meme coins experiences a significant decline, Shiba Inu is facing the risk of losing support at $0.000012. The question now is whether or not SHIB will be able to maintain dominance at this key level.
Over the past 30 days, meme coins have witnessed a sharp drop in market cap, going from $50.73 billion to $37.41 billion, marking a decrease of 26.25%. Amid this bearish trend, Shiba Inu has shown a relatively better performance compared to other meme tokens such as DOGE and PEPE, which have experienced declines of 19.44% and 40.51% respectively in the same period. Shiba Inu is currently trading at $0.00001339, with a 1.75% decrease in the last 24 hours.
Despite this correction, the SHIB token price has broken below multiple support levels and is now struggling to maintain dominance above $0.000012. Bulls are attempting to avoid a further correction to $0.000010. It remains uncertain whether or not the meme coin will survive this broader market correction.
The 4-hour chart reveals a strong resistance trendline that is keeping bullish reversals in check. Additionally, a short-term support trendline has been holding Shiba Inu within a falling channel pattern. In comparison to the support trendline, the strong resistance trendline has a wider history and an increased likelihood of breaking below $0.00001289 in the next negative cycle. A bearish engulfing candle of 3.72% has formed recently, followed by a bullish reversal in the falling-channel pattern, resulting in a price increase of 1.98% in the past 12 hours and limiting the damage to 1.75% in the last 24 hours.
Shiba Inu is currently consolidating in a sideways movement based on Fibonacci levels in the 4-hour chart, ranging from $0.00001992 to $0.00001127. The key support lies at the 23.60% Fibonacci level at $0.00001289, while the coin is struggling to assert dominance above the 38.20% Fibonacci level at $0.00001401. A breakout above the 50% Fibonacci level at $0.00001498 could potentially lead to a rally towards the 78.60% Fibonacci level at $0.00001763. Conversely, a breakdown below the 23.60% Fibonacci level could result in a drop to the $0.00001127 base.
The underlying demand for Shiba Inu remains at risk as the meme coin tries to navigate through this challenging market environment.