- Shiba Inu (SHIB) witnesses a slight uptick due to Bitcoin’s resurgence.
- Despite the rebound, SHIB faces significant resistance at fundamental Exponential Moving Averages (EMAs).
- SHIB must re-enter the falling wedge pattern for a substantial rally.
Shiba Inu’s price outlook remains uncertain amid critical resistance levels, requiring key technical moves to shift the sentiment.
Current Market Sentiment and Resistance Levels
The price of Shiba Inu has shown some volatility following a broader market rise led by Bitcoin. Despite this, it remains under pressure, encountering strong resistance at crucial EMAs. The asset needs to re-enter the falling wedge pattern to potentially convert this hesitation into upward momentum.
Financial Impact on SHIB Holders
An in-depth analysis reveals that 71% of SHIB holders, amounting to approximately 542 trillion tokens, have faced losses over the past 18 days. This bearish trend on SHIB charts could further amplify these losses, with an additional $190 million in SHIB tokens at risk if the price declines by another 16%. Such a drop could erode confidence among SHIB investors, creating a challenging environment for recovery.
Technical Analysis and Patterns
Shiba Inu’s price chart indicates it recently broke down from a falling wedge, a rare occurrence often associated with bearish trends. The asset has found interim support at $0.000012 and more robust support at $0.00001. Nevertheless, it faces immediate resistance at the 50-day ($0.00001425) and 200-day ($0.00001628) EMAs. To regain a bullish outlook, SHIB must surpass $0.00001344 and potentially break beyond the 50-day EMA towards $0.00001625 and $0.000018.
On-Chain Analysis and Market Outlook
Data from Coinalyze reveals that open interest in SHIB has decreased by 4.54% over the last 24 hours, signifying a possible end to the recent minor uptrend and a shift towards a bearish outlook. Over 26,000 SHIB holders, representing 14.29 trillion tokens valued at $190 million, are on the cusp of unrealized losses. This adds to the already underwater 542 trillion tokens worth $7.24 billion.
Technical Indicators and Future Projections
The Relative Strength Index (RSI) approaching 47.61 and the Chaikin Money Flow (CMF) at 0.03 suggest the asset is currently in a neutral zone, neither overbought nor oversold. However, a declining volume during recent upward movements indicates a bearish divergence, which could perpetuate the downtrend unless a significant breakout occurs.
Conclusion
Shiba Inu’s price trajectory remains in a delicate balance as it grapples with significant resistance levels. The upcoming days are critical, with the need for substantial buy pressure and volume to overturn current bearish sentiments. Investors should closely monitor key technical indicators and market dynamics to navigate potential shifts effectively.
