Shiba Inu (SHIB) recently crossed a designated swap zone amid the downturn, presenting new support and resistance levels to watch on the 1-hour timeframe.
With the crypto market currently in a free fall, Shiba Inu has witnessed a major downturn that has breached important support levels. One of the most crucial support points to give in was the 50-day EMA at $0.00002484, which the bears conquered on April 28.
Shiba Inu Slips Below Swap Zone
As this month edges close to an end, SHIB is already down 22%, with the market downtrend showing no signs of stopping. Most recently, TradingView chartist and market analyst Ahvaz called attention to this persistent drop, confirming that Shiba Inu has now slipped below a pivotal area marked as the swap zone.
SHIB found support at this swap zone, which ranges from $0.00002496 to $0.00002588, from April 21, following the recovery campaign that saw it gain by 14.43% on April 20, the day of the latest Bitcoin halving. However, as the bears retook control, Shiba Inu has now relinquished most of these gains, eventually breaching below the swap zone.
This drop fully occurred over the weekend, when SHIB collapsed below the $0.000025 psychological support on Saturday. Shiba Inu aimed to slip back into the swap zone the next day, but met a roadblock at the $0.00002496 region, which had flipped from support to resistance.
New SHIB Resistance and Support Levels
The new week introduced fresh bearish pressure, leading to a further drop below the swap zone as SHIB slumped to the $0.000023 region for the first time in over a week. One of the new support levels created amid this downturn rests at $0.00002310, serving as robust defense against any drops to the April 18 lows at $0.00002231.
If the $0.00002310 defense falls, the bulls can hedge against steeper declines by holding firm the support between $0.00002214 and $0.00002260, which represents Ahvaz’s stop loss territory. Market bulls would need to defend this to avoid a drop to the April 19 low at $0.00002082.
Overall, Shiba Inu has a firm but minimal defense system stationed around the $0.000021 level, where over 46,180 addresses procured 40.8 trillion SHIB tokens between $0.000019 and $0.000022, per IntoTheBlock data. Breaking below this point would result in drops underneath the structurally crucial $0.000020 level.
On the flip side, with its price currently at $0.00002400, Shiba Inu must breach the Fibonacci 0.5 resistance at $0.00002454 to have a chance at recovery. A push above this point would bring SHIB face to face with the 20-day EMA ($0.00002510) and back into the swap zone.
Should the bulls ride on the growing accumulation trend to break this resistance, Ahvaz already sets an ultimate target of $0.00003284, which aligns with previous targets set by other market watchers around the $0.00003 level. Bullish sentiments surrounding ecosystem developments could play a role in this upswing.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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