- Shiba Inu [SHIB] is on the brink of further decline if major resistance barriers are breached.
- Market indicators suggest a potential downtrend ahead.
- Recent analysis highlighted key metrics pointing to a bearish trend.
Investigate the recent market behaviors of Shiba Inu (SHIB) to understand the factors influencing its price, and what the future might hold for this popular cryptocurrency.
SHIB Faces Continual Market Pressure
The Shiba Inu token has endured a significant loss, sliding 15.17% over the past six days. With its trading price dipping below the 100 EMA support level and failing to recover above it in the current trading session, the signs are pointing towards a bearish market move.
Should this bearish momentum continue, a fall to the $0.000019 support level appears possible if prices break below the $0.0000205 consolidation support mark.
As per the latest data from CoinMarketCap, SHIB is valued at $0.00002215, reflecting a 4.36% decrease in the last day and a 7.22% drop over the past week.
Decline in Market Capitalization and Increased Trading Volume
Shiba Inu’s market capitalization has seen a 4.21% decrease to $13.08 billion, paired with a 21.31% surge in trading volume over the past 24 hours. This uptick in trading volume, amid falling prices, often signals heightened selling activity, indicative of investor concern or panic.
Shiba Inu’s Price Impact and Investor Behavior
An analysis of Santiment’s data shows troubling declines in transactions made at a profit, with the ratio of profit to loss experiencing significant fluctuations. A spike in loss volume during recent price drops underscores that many investors are offloading their SHIB holdings, possibly fearing further downturns.
Additionally, Santiment’s data reveal an increasing supply of SHIB on exchanges, which typically hints at rising selling pressure as more investors look to liquidate their positions.
Technical Analysis and Market Sentiment
The stochastic RSI indicator currently stands at 2.49, suggesting the token is oversold. While a short-term reversal could happen, the overall trend appears bearish with SHIB below its moving averages.
Projected Trajectory for SHIB
The convergence of rising loss-to-profit ratios, heightened exchange supplies, and dwindling profitable transactions paints a rather gloomy picture for Shiba Inu. The crypto is testing critical support levels, hinting towards a continued downtrend unless a significant buying wave or a reversal trend emerges.
If a reversal does occur, we might see SHIB rally back to the $0.000024 resistance level. Conversely, without a bullish reversal, the price could slide further towards the $0.000019 support level.
Conclusion
In summary, Shiba Inu [SHIB] is currently in a bearish phase, with significant declines in key metrics and investor sentiment. The focus now rests on upcoming market movements and whether new support levels hold or if a bullish reversal can alter the current downtrend trajectory.
