SHIB Tests Critical Support After Unity Nodes Deal Sparks Real-World Utility Push
Market Structure Shifts Lower
- Shiba Inu price dropped 9.5% last week, trading at six-month lows.
- RSI and ADX indicate a mature downtrend approaching exhaustion with oversold conditions.
- Unity Nodes partnership could boost SHIB’s utility as a telecom payment solution.
While the price of Shiba Inu fell 9.5% last week, news of a partnership that will further its real-world use was not enough to keep the coin from suffering through another red December. We wrote about the vulnerability of the Shiba Inu coin and the potential for the team to surprise supporters with good development updates. This announcement came in the form of a tweet from the Shiba Inu team on December 17, which read: “Unity Nodes Integration Update Global Node Model has always been a gift and a curse for SHIB. The price has dropped 9.5% since the tweet and has Shiba Inu again trading at its lowest levels for six month. RSI on the daily time frame is currently at its lowest level since June 2020 and suggests that the six-month low will not give way just yet. Price is down almost 80% from November 2020’s all-time high and down 58% from the September peak. Becoming a part of the Unity Node network will add to its utility overall and make it easier to use as a payment system.
Shiba Inu was down 9.5% on the week to $0.00000904, and lower by an eye-watering 63% in 2022 and now trades as the 243rd most valuable crypto asset in the world with a market capitalization of $4 billion. However, the migration from meme coin to utility token in the $2 trillion telecommunications and network services market could easily reignite interest in Shiba Inu among more progressive investors. According to the latest details, SHIB has obtained 20% of the ownership of Telecom Infrastructure Corp., a subsidiary of Unity Nodes that is in ownership of nodes and licenses, instantly making SHIB a revenue-generating asset for SHIB holders and turning the coin into a disruptive method of financing decentralized telecom infrastructure.
| Metric | Value |
|---|---|
| Asset | SHIBA INU (SHIB) |
| Current Price | $0.00 |
| Weekly Performance | -9.51% |
| Monthly Performance | -7.38% |
| RSI (Relative Strength Index) | 39.8 |
| ADX (Average Directional Index) | 31.1 |
| MACD (MACD Level) | 0.00 |
| CCI (Commodity Channel Index, 20-period) | -90.00 |
RSI at 39.83 Signals Oversold Territory Without Capitulation
With the oscillator presently approaching the same threshold once again, bulls will be hoping for an imminent new floor to be set. Advocates of the ‘smart money knows best’ adage will likely be licking their lips at the prospect of another potential discounted entry, however, with the hidden Unity floor leading them to suspect this could be the final washout flush before a major double-digit Q4 announcement.
Therefore, for those of us with a medium-term trading outlook, the best move might be to try and put your Shib aside and forget about it for a while. The more effort you have to make to avoid watching your money melt on the screen, the more you probably need to do exactly that!
ADX at 31.14 Confirms Mature Downtrend Nearing Exhaustion
The telecom partnership announcement came right as this downtrend matured, and could have been a market low. This shouldn’t have been a surprise – closer examination of previous ADX peaks suggests that SHIB trends rarely maintain above a 35 reading before turning around. This is one of the many adaptational tools one can use when reading the markets.
In simpler terms, the ADX suggests we are in a very strong bear market, but we are getting to the point where the trend is likely to exhaust itself. So, the day trading game-plan is to be ready for some big moves as the old and overextended trend clashes with a big fundamental driver – either a complete washout because we broke 0.00005 support or a potentially violent upside move if the market decides it loves Unity Nodes integration.
20-Day EMA at $0.00001145 Caps Recovery Attempts
The price action paints a clear picture through the EMA series, as SHIB has remained contained beneath the complete moving average cloud since the outset of December. This month has seen the 20-day EMA, which currently stands at $0.00001145, deny two separate bounce efforts, and it is now roughly 27% higher than the prevailing price – an extensive gulf that highlights the technical destruction.
Perhaps even more worrying, the 50-day EMA at $0.00001344 and the 200-day at $0.00001551 create a resistance sandwich that would require consistent buying to breach.
The Unity Nodes announcement didn’t have much of an impact on the market, as price action failed to test the closest resistance at the 10-day EMA ($0.00001031). The previous support zone at $0.000010 now turns into a resistance level that bulls will have to overcome if there is to be any recovery. The fact that the price is getting sandwiched by the current price and the 10-day EMA makes a breakout imminent.
Support Holds at $0.00000904 After Six Tests Since Summer
Buy momentum overcomes these areas, providing expansions toward $0.0000145 (200-day moving average), $0.000018 (200-day EMA) and retest of Q4’s breakdown zone between $0.000022 – $0.000028. A close to 80-200% climb from current prices. Timeframe of 8 to 12 weeks.
However, a more sustainable rally isn’t expected until stronger support has been established, notwithstanding a dead cat bounce arriving at any time given the highly oversold nature of SHIB (14-day RSI: 19.68).
The setup is like a coiled spring in which the Unity Nodes catalyst runs into multi-month oversold support. And the fundamental utility will likely overtake the technical breakdown or the bear trend will simply overpower the positive news flow.
Unity Nodes Partnership Sets Stage for Technical Reversal or Breakdown
Buy the rumor, sell the news… that adage has certainly been at play ahead of April 5’s “groundbreaking” release of Syntropy Core 2. Bulls will be hoping for a repeat of December’s uptrend where Accumulation vacated Distribution then engulfed that leg, surging to a new 3-year high.
The negative outcome comes into play with the breach of $0.00000904 support, and in light of the partnership with the telecom company, which may not convince speculative players yet; a break below the former would likely trigger stops and incent stakeholders to also bail out on positions.
With the oversold RSI, mature downtrend exhaustion signals, and real utility expansion via Unity Nodes, the most likely short-term trajectory has SHIB ranging between $0.00000837 – $0.0000107 as the market digests the shift from meme coin to telecom payment solution.
