Shiba Inu (SHIB) Breaks Down Dramatically, Uniswap (UNI) Freefall Continues: Next Support, Cardano (ADA) Lands on Major Support

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Written By Maya Cantina

Sat, 13/04/2024 – 0:30

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Contents

  • Uniswap’s problematic decline
  • Cardano finally lands on support

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Shiba Inu’s price fell below the crucial $0.000027 level and is slipping out of the symmetrical triangle pattern. This movement is quite problematic since it is a pattern that typically serves as a sturdy support. The breakdown from this formation may very well chart the course for SHIB’s future.

Looking at the chart, we see that SHIB’s price drop below the symmetrical triangle indicates a bearish outlook. This triangle, acting as a consolidation zone before the breakout, had held as support, giving hope for an upward reversal.

SHIBUSDT
SHIB/USDT Chart by TradingView

Now breached, the level around $0.000027 might turn into resistance. If the price struggles to climb back above this line, it could confirm the start of a downtrend.

In the current scenario, there is potential for further decline. The next support lies near $0.000024, where buyers might step in to halt the drop. However, should the price stabilize and buyers regain strength, pushing it back within the triangle, it could invalidate the breakdown and possibly rekindle SHIB’s upward momentum.

For growth to reenter the conversation, SHIB needs to reclaim its position inside the triangle and target the upper boundary, potentially around $0.00003. A solid close above this level on increased volume could shift the narrative back to a bullish one, possibly setting SHIB up for a climb toward higher resistance levels.

Uniswap’s problematic decline

Uniswap’s price is in a problematic decline, as the market reacts to the recent notice from the U.S. Securities and Exchange Commission (SEC). The notification has caused outflows from the exchange, causing concerns about the platform’s regulatory standing and its tokens’ future.

The news has weighed heavily on UNI’s price, sending it below the $9 mark. The daily chart shows a decisive break below this psychological level, with the next possible support around the 200-day moving average at approximately $8.35. 

If this level fails to hold, Uniswap may find its next support much lower, which could potentially create an even more bearish outlook for the token.

The decentralized nature of Uniswap has been one of its most appealing features, allowing trading without heavy regulations and scrutiny. However, if the case between the SEC and Uniswap begins, there will be even more risks for investors, which might directly affect the price of the DEX’s underlying token.

Cardano finally lands on support

Cardano has recently hit a major support level, with its price dipping to $0.56. This is a crucial moment for ADA as it leans on the 200-day EMA, a line that has proven to be a strong support in the past. In March 2024, ADA bounced off this level and went on to reach a local high, indicating the level’s significance.

The current scenario for Cardano paints a picture of hesitation. The 200 EMA stands at around $0.5271, serving as the next fortress of support beneath the current price. Although ADA has historically shown strength at this level, the present market momentum hints at a lack of immediate energy to propel a swift recovery.

With ADA’s descent to the support zone around $0.56, there is a chance for stabilization if the price can hold above the 200 EMA. However, if ADA breaches this line of defense, it may open the door to further declines, possibly testing the resilience of lower support zones.

For growth prospects, Cardano faces a challenging climb. It would need to recapture higher levels, specifically around the $0.61 line, to alter its current trajectory. This level, which was once a support, may now act as resistance, and a solid break above it could suggest a shift back to a bullish trend.

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