Shiba Inu (SHIB), the popular cryptocurrency coin that once captivated investors with its explosive rise, is facing a challenging period in the market. Recently, the cryptocurrency experienced a significant 40% price drop, pushing it below key support levels. With no immediate signs of recovery, the situation has raised concerns about the future of the asset, with some speculating that SHIB could add another zero to its valuation.

SHIB’s Struggle Below the 200 EMA

The recent downturn in SHIB’s price has left it struggling below the 200 Exponential Moving Average (EMA), a crucial indicator of support. The 200 EMA is often considered a key level for assessing the strength of a trend, and SHIB’s failure to maintain its position above this threshold has many market participants on edge.

As a result, SHIB’s price has retreated to levels not seen since February 2024, erasing months of gains and raising alarms about further downside. This breakdown below the 200 EMA signals that SHIB has moved out of its bullish cycle and entered a bearish phase, with the absence of buying pressure exacerbating concerns about further losses.

Potential for Further Decline

With no significant support in sight, SHIB’s price is currently in a vulnerable position. Experts are now eyeing the psychological level of $0.000010 as a potential target. If the price continues to fall, breaking this level could signal a more substantial decline, possibly even bringing SHIB into the range of $0.00000999. This would mark the addition of another zero to SHIB’s valuation, a situation that would be concerning for both short-term traders and long-term holders alike.

Such a drastic drop could also trigger panic selling, further accelerating the decline and leading to a capitulation event. If SHIB fails to recover soon, it could face even more significant challenges, including a retest of the lows from 2023. For investors who have held the coin for a while, this would be a painful development, potentially wiping out any gains made during the earlier stages of the rally.

Signs of a Possible Recovery

Despite the current bearish outlook, there is still hope for a recovery if SHIB can reclaim key resistance levels. One of the first major hurdles for SHIB is the $0.000012 level, which previously acted as a support zone before the price collapse. If SHIB can break above this level, it could signal that buyers are starting to regain confidence in the asset, setting the stage for a potential rebound.

Further upside could be seen if SHIB manages to close above $0.000014. Such a move would likely encourage bulls to push the price higher, potentially reversing the negative trend and restoring some of the optimism that surrounded SHIB earlier in its rally.

Market Sentiment and What’s Next for SHIB

The current market sentiment surrounding SHIB is undoubtedly cautious, with many investors wary of the coin’s continued decline. However, it’s important to note that cryptocurrency markets are notoriously volatile, and recoveries can happen quickly if sentiment shifts.

In the coming days, all eyes will be on SHIB’s ability to reclaim critical resistance levels and regain momentum. If it fails to do so, the coin could continue its downward trajectory, possibly adding another zero to its price and leading to even greater uncertainty in the market.

As always, investors are advised to closely monitor market developments and conduct their own research before making any trading decisions. The future of Shiba Inu remains uncertain, but for now, its fate lies in the hands of market forces.