- SHIB price breaches 200-SMA on the 4H chart, calls for more downside.
- A test of the horizontal trendline support at $0.00000463 remains on the cards.
- Bear cross keeps the sellers hopeful while RSI remains bearish.
The Shib price is looking to extend Friday’s sell-off, as China’s regulatory implications continue to haunt the cryptocurrency market, keeping the buyers on the sidelines.
The canine-themed coin is shedding nearly 11% so far this Saturday, having lost about 70% of its value from record highs of $0.000039.
SHIB price braces for more declines
The Shib price is consolidating the latest leg down to $0.0000065 lows, as the bears gather strength for the next push lower.
At the time of writing, Shiba Inu is trading around $0.0000070, having breached the last line of defense for the bulls, which is the critical 200-simple moving average (SMA) on the four-hour chart. That level is now seen at $0.0000084.
The Relative Strength Index (RSI) is seeing an upturn but remains way below the central line, suggesting that any pullbacks are likely to remain short-lived.
Meanwhile, an impending bear cross on the said time frame, with the 21-SMA approaching the 200-SMA, also boosts the odds for a fresh downswing.
It’s worth mentioning that the Shib price met fresh supply and breached the 200-SMA on a sustained basis after the 50-SMA pierced the 100-SMA from above and confirmed a bear cross during Friday’s European hours.
This implies that if the 21 and 200—SMAs bearish crossover materializes, any chance of a bullish reversal could get invalidated, exposing the $0.00000654 low, reached due to Wednesday’s market collapse.
A firm break below the latter could trigger a steep drop towards the key horizontal support at $0.00000463.
Alternatively, the Shib buyers need acceptance above the 200-SMA support now resistance for any recovery attempts.
Further up, the bearish 21-SMA cap of $0.00000972 could be challenged.
All in all, the path of least resistance for the Shib price appears to the downside.