Shiba Inu (SHIB) edged further down on Nov. 24 as its appeal among the army of retail traders, who helped it rally by more than 535% to a record high of $0.00008854 earlier this year, declined.
SHIB’s price dropped by nearly 60% after establishing the said all-time high on Oct. 28, signaling that traders have been actively locking their Shiba Inu profits. That has further resulted in a substantial drop in SHIB’s benchmark instrument of SHIB/USDT volumes on Binance, underscoring a weak retail interest.
In doing so, SHIB’s reported market capitalization slipped to $21.30 billion from around $28.31 billion in just five days beginning on Friday.
Google’s keyword search data also showed a declining interest in the “Shiba Inu” markets, with its score on a 12-month timeframe dropping down from a perfect 100 to 20, much in line with SHIB’s 60% price correction.
Alex Krüger, an independent market analyst, referred to the dropping Google Trends for the keyword “Shiba Inu” as a sign that the token has been topping out — i.e., the beginning of its bear cycle.
More sell-off ahead?
The latest bout of selling in the SHIB market pushed its prices below a critical upward sloping support (the velvet trendline), triggering its potential to undergo further declines.
For instance, the levels defined within the scope of the Fibonacci retracement graph, drawn from a swing low of $0.00000614 to a swing high of $0.00008933, provided potential entry and exit points as SHIB’s price trended lower, as shown in the chart below.
It appears SHIB’s latest price had it test the 0.618 Fib line at $0.00003792 as its interim support level. A rebound off the said price floor raised SHIB’s potential to retest the upward sloping trendline as resistance, which coincides with the 0.5 Fib line at $0.00004773.
Conversely, a move below $0.00003792 may risk sending SHIB’s price to the 0.786 Fib line at $0.00002394. Market analyst IncomeSharks also highlighted the area around $0.00002394 as a potential “buy zone” while referring to a weekly SHIB chart.
$SHIB – Think we see weekly supertrend support eventually touch. This is where I would look to get back in if I was to play this. pic.twitter.com/nBmtfB77n6
— IncomeSharks (@IncomeSharks) November 23, 2021
SHIB price bull flag setup
Offsetting the sell-off fears in the SHIB market is the occurrence of a potential bull flag setup.
Related: Shiba Inu in danger of ‘topping signal’ as SHIB price loses 50% in 3 weeks
In detail, SHIB’s price has been trending lower inside a downward sloping channel since topping out at $0.00008854 on Oct. 28. The channel more or less appears like a bull flag, a bullish continuation indicator that appears as a consolidation phase following a strong move higher, as shown in the chart below.
Typically, traders place their upside target at a length equal to the height of the previous uptrend (called a flagpole), anticipating that the instrument will break above the flag range with higher volumes. As a result, SHIB has the potential to rally by as high as $0.00005100, its flagpole’s height.
That puts the Shiba Inu token en route toward $0.00010000.
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