Shiba inu (SHIB), the world’s second-largest meme token by market value, dropped sharply along with the broader market, triggering a bearish price pattern. However, the token has outperformed its peer dogecoin (DOGE).
Prices declined 5% from $0.000012888 to $0.000012188 over the 24 hours, crowding out over $1 million in leveraged bets, most of which were long positions, a sign that the market was skewed bullish, according to data source Coinglass.
Robust resistance was established at $0.00001237 level during high-volume liquidation, with support emerging at $0.00001197.
More importantly, the decline marked a downside break of the contracting triangle identified by trendlines connecting Jun. 22 and Sept. 1 lows and May 12 and Jul. 21 highs. In other words, the range play has resolved bearishly, indicating potential for further losses toward the Jun. 22 low of $0.00001004.
The range breakdown saw a volume surge of 5.29 trillion tokens, indicating an institutional liquidation event, according to CoinDesk’s market analytics.
Key insights
- SHIB encountered considerable downward pressure throughout the preceding 24-hour period from Sept. 21, 15:00 to Sept. 22, 14:00, retreating from $0.000012888 to $0.000012188, constituting a 5% depreciation.
- The comprehensive trading range extended to $0.000009441 (79%), with the most pronounced movement materialising on Sept. 22, 06:00, when valuations plummeted to $0.000011975 amid exceptionally elevated volumes of 5.29 trillion tokens, thereby establishing formidable resistance at the $0.000012373 threshold.
- Critical support materialized at $0.00001197, accompanied by substantial buying interest, while conventional resistance consolidated around $0.00001290, where valuations consistently encountered downward pressure throughout the initial trading sessions.
SHIB-DOGE bounces from record low
While SHIB fell 5%, dogecoin suffered a bigger loss of over 8%, resulting in a notable recovery in the Binance-listed SHIB-DOGE pair from record lows.
The pair’s daily MACD histogram is on track to turn positive, marking a bullish shift in momentum, which suggests that SHIB could continue to outperform DOGE in the coming days.
That said, the overall outlook would remain bearish as long as the descending trendline from the March 2024 highs remains intact.
