SHIB Price Correction Looms as Token Approaches Critical Support Level

The SHIB price is nearing a critical level, sparking concern among traders and investors. With a SHIB price correction looming, market participants are growing increasingly nervous about the potential for a significant downturn. The SHIB price is flirting with dangerous territory, risking a steeper decline to $0.000010, as analysts point to key technical indicators that suggest further downside may be imminent.

The first warning comes from SHIB’s overall market performance. Over the past few months, SHIB has struggled under broader market bearishness, failing to recover meaningfully despite occasional relief rallies. Now, the SHIB price correction could deepen further, potentially pushing the meme coin into a more precarious position.

SHIB Struggles to Break Free from Bearish Grip – SHIB Price Correction

At present, Shiba Inu (SHIB) is trading around $0.000013, a far cry from its all-time high, down over 85%. Despite this significant decline, concerns are mounting that the worst might not be over yet. According to data from Glassnode, SHIB’s Network Value to Transactions (NVT) ratio spiked on September 14, raising red flags for investors.

The NVT ratio is a key indicator that measures the relationship between market capitalization and transaction volume. A lower NVT ratio typically signals that an asset is undervalued, with high transaction activity relative to its market cap.

However, in SHIB’s case, the high NVT ratio suggests the opposite: SHIB’s price may be inflated, with limited transaction activity supporting its valuation. This sets the stage for a potential SHIB price correction in the near future.

“The elevated NVT ratio indicates that SHIB’s market price is not supported by corresponding transaction activity, making it vulnerable to a downward price correction,” noted crypto analyst, Benjamin Cowen. “If the trend continues, we could see a significant pullback.”

The SHIB price correction is also being signaled by several other indicators, including the In/Out of Money Around Price (IOMAP) metric, which highlights areas where SHIB holders have accumulated significant volumes of the coin. According to IntoTheBlock data, SHIB faces a heavy resistance level at $0.000014, where over 10,000 addresses collectively hold nearly 45 trillion tokens.

This level of resistance presents a considerable challenge for SHIB. If prices are unable to break through this resistance, it could trigger another sharp drop. The current support level between $0.000011 and $0.000013 holds much less volume, leaving SHIB vulnerable to further downside pressure.

“The IOMAP data shows a critical supply zone above SHIB’s current price,” explains IntoTheBlock analyst, Lucas Outumuro. “If this resistance holds, it’s likely we’ll see a drop to the $0.000010 level, intensifying the current price correction.”

SHIB Price Correction: Descending Triangle Confirms Bearish Sentiment

Further fueling concerns about a SHIB price correction is the descending triangle pattern forming on the SHIB/USD daily chart. Since June, SHIB has been trading within this pattern, which typically signals a bearish continuation.

A descending triangle is characterized by a downward-sloping upper trendline and a flat lower support line, suggesting that sellers remain in control.

Unless SHIB breaks out of this descending triangle to the upside, the pattern is likely to result in further downside movement. Based on current chart analysis, a 20% correction could occur, driving SHIB’s price down to $0.000010. This projection aligns with other bearish indicators, painting a grim picture for SHIB in the near term.

“The descending triangle pattern is one of the most reliable bearish signals in technical analysis,” says crypto strategist, Rekt Capital. “If SHIB fails to break out of this formation, we could easily see a continuation of the price correction down to $0.000010.”

While the majority of signs point to a continued SHIB price correction, there remains a slim chance for a bullish breakout. If SHIB manages to break out of the descending triangle and surpass the $0.000014 resistance level, it could invalidate the bearish scenario and spark a recovery.

In such a case, SHIB’s price could surge to $0.000016 or higher, providing a much-needed relief rally for investors. However, breaking through the current resistance will require substantial buying volume, something that has been lacking in recent weeks.

“There’s always the possibility of an unexpected breakout,” says crypto trader Michaël van de Poppe. “But it’s important to remember that the market is still largely bearish, and SHIB needs to gain significant momentum to reverse the current downtrend.”

For SHIB investors, the current market situation is tense. With multiple indicators pointing to a potential price drop, the focus should remain on managing risk. Short-term traders may consider reducing exposure to avoid deeper losses, while long-term holders may opt to wait out the volatility in hopes of an eventual recovery.

Regardless of the approach, the SHIB price correction is something all investors should keep a close eye on. If the bearish indicators play out as expected, SHIB could face a sharp decline in the coming weeks.

In conclusion, the SHIB price correction seems inevitable unless a major market catalyst shifts the sentiment. The meme coin’s resistance at $0.000014 remains a formidable barrier, and the combination of high NVT ratios, IOMAP resistance, and descending triangle patterns suggests more downside may be on the horizon.

The next few weeks will be critical in determining whether SHIB can defy the odds and break out of its bearish trend—or if a deeper price correction awaits.
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