Shiba Inu (SHIB) Down 12% This Week: Potential Bull Rally on the Horizon?

• Shiba Inu (SHIB) has seen a decline of over 12% in the past week.
• Despite the downturn, some market indicators suggest potential upside.
• Analysts are watching SHIB closely for signs of a bullish reversal.

A detailed look at Shiba Inu’s recent price action and potential for a future rally.

Recent Price Movements of Shiba Inu

Shiba Inu has experienced a substantial decline in its price, plummeting by over 12% in the past seven days. Current market data indicates that SHIB’s price has continued to drop on a daily basis, trading at $0.00001795 with a market cap exceeding $10.58 billion at the moment of writing.

Data from CoinMarketCap highlights that this decline has left approximately 48% of SHIB investors in a loss position. However, there is an emerging pattern that may herald better days ahead. SHIB seems to be consolidating in a bullish pattern on the charts, which might be a precursor to a significant upward movement.

Examining the Consolidation Phase

According to our analysis and data from IntoTheBlock, SHIB has been trading within a narrow range since early March. Twice rejected at the upper boundary of its current pattern, SHIB is now approaching a critical support level. Successfully testing this support and breaking out could trigger a substantial rally, possibly reclaiming its previous highs from March.

Potential for a Bullish Rally

Market metrics suggest a possible trend reversal for SHIB. Notably, there was an uptick in buying pressure last week, indicated by increases in exchange outflows. This behavior was further supported by rising amounts of SHIB held outside exchanges and a corresponding decrease in supply on exchanges.

Whale activity has also been positive, with top addresses accumulating more SHIB recently.

Further reinforcing the potential for a bullish reversal, SHIB’s fear and greed index stands at 36%, suggesting prevailing market fear. Historically, this level has often been a precursor to price increases.

Analyzing Key Metrics

Our technical analysis shows SHIB’s Relative Strength Index (RSI) entering the oversold zone, which could indicate a forthcoming price correction. Additionally, the Chaikin Money Flow (CMF) has shown an upward trend, signaling incoming investment and potential price recovery. However, it’s worth noting that the MACD (Moving Average Convergence Divergence) remains bearish, suggesting sellers still have an upper hand for now.

Conclusion

In summary, while Shiba Inu has faced significant declines, various metrics and market indicators present a compelling case for a potential recovery. Investors should watch closely for signs of support holding and a possible bullish breakout, as these could signal the start of a new rally towards reclaiming previous highs.