The Shiba Inu token is currently engaged in a struggle to reclaim the psychological threshold of $0.00001. Following the addition of an extra zero to its price, the cryptocurrency is attempting a rebound. The key question remains: will investors be able to erase this zero that weighs heavily on their hopes?
In Brief
- •SHIB experienced a significant drop to $0.0000085 during a flash crash on October 10, marking its lowest level of the year.
- •The memecoin’s price moved into a higher range, effectively adding an extra zero after losing the crucial support level of $0.00001.
- •A subsequent rebound attempt pushed the price to $0.00000999, narrowly failing to eliminate this zero.
- •The $0.00001 threshold has now become a significant technical resistance level to monitor.
Shiba Inu: A Close Call with Erasing a Zero
Shiba Inu is navigating a challenging period. After four consecutive days of decline, the token's price reached $0.00000925 last Friday. This downturn saw the cryptocurrency cross a major psychological threshold, resulting in an extra zero being added to its price.
The most significant impact occurred on October 10, during a flash crash. Sellers aggressively challenged the historical support level of $0.00001, a floor that had previously held firm in April and June of the year. Subsequently, SHIB plunged to $0.0000085, establishing its lowest point of the year. This price zone had historically served as a springboard for previous rebounds, presenting strategic entry opportunities for buyers.
Currently, the market is showing signs of stabilization. Shiba Inu has recorded a modest gain of 1.91% over the past 24 hours, trading at $0.00000989. This rebound is occurring within the context of a broader recovery in the cryptocurrency market. However, the additional zero persists, serving as a visible reminder of the recent correction.
Investors Balancing Patience and Speculation
The primary question on many investors' minds is whether SHIB will manage to erase this zero. Bullish sentiment has shown renewed signs of life, with the token reaching an intraday high of $0.00000999, bringing it perilously close to the symbolic threshold. Despite being only a fraction away from crossing $0.00001, buyers were ultimately unsuccessful in this attempt.
This initial unsuccessful attempt warrants careful observation. If Shiba Inu experiences multiple failures at this level in the upcoming trading sessions, the $0.00001 barrier will likely be confirmed as resistance. Consequently, the aspiration of erasing the zero would be postponed to the medium term, requiring investors to adjust their expectations.
Nevertheless, a bullish scenario remains a distinct possibility. A substantial influx of buyers could empower SHIB to break through this ceiling. Once the zero is eliminated, subsequent targets would become clearer: $0.0000113, followed by $0.0000121, and ultimately $0.0000128. Each of these levels would signify a progressive victory for the bulls.
Conversely, if selling pressure intensifies once more, SHIB could face another decline. Key support levels to monitor are at $0.0000092, and then at $0.0000085. This latter level corresponds to the floor established during the flash crash, a zone where buyers must demonstrate a strong reaction to avert further capitulation.
Shiba Inu stands at a critical juncture. The ongoing battle to eliminate this extra zero will be pivotal for the token's immediate future. The upcoming trading sessions will provide clarity on whether buyers possess the necessary strength to reclaim lost ground.
This mission appears challenging, especially as many analysts suggest the bullish cycle may be nearing its end. Such a scenario could limit any sustained rebound for altcoins. For a deeper understanding of this underlying trend, consider reading our article: Bitcoin, Ethereum and XRP in free fall: is this the end of the cycle?