- Recent developments have painted a bearish picture for Shiba Inu (SHIB) in the cryptocurrency market.
- Analysts suggest that SHIB might continue its downward trajectory, influenced by various technical and on-chain metrics.
- Despite a brief price bounce, current resistance levels could pose serious challenges for SHIB’s price recovery.
Read our in-depth analysis on Shiba Inu’s (SHIB) current market trends and future outlook.
Shiba Inu Faces Persistent Downtrend Amidst Bearish Indicators
Shiba Inu (SHIB) has recently exhibited a significantly bearish pattern according to the latest price actions and technical indicators. The cryptocurrency experienced a 38% bounce from its recent lows within the past two days. However, it failed to break the former support level of $0.0000178, which now acts as strong resistance. This failure could potentially signal further price declines, casting doubt on any hopes for a near-term recovery.
Assessing Fibonacci Retracement Levels Amid Downtrend
Diving deeper into the technical analysis, the Fibonacci retracement levels reveal critical insights: SHIB has broken past the 78.6% level and may trend further downward toward the 100% mark or beyond. This is compounded by the relative strength index (RSI), which remains below the neutral 50, indicating a sustained downtrend. Furthermore, the directional movement index (DMI) reveals that the -DI and ADX values have been above 20 since mid-June, corroborating the intensity of the ongoing bearish phase.
On-Chain Metrics Highlight Weak Bullish Activity
Examining on-chain metrics, the outlook remains grim for SHIB bulls. The mean coin age has been trending downward since the last week of May, highlighting a prevalent distribution phase with minimal accumulation. Additionally, dormant circulation saw a notable spike on July 6th as prices briefly rose, possibly indicating impending selling pressure. Concurrently, daily active addresses have remained consistent with the previous month’s activity, suggestive of stagnant network growth.
Conclusion
In summary, Shiba Inu’s (SHIB) market outlook appears bleak with multiple bearish indicators. The failure to break existing resistance levels, alongside troubling on-chain metrics and steadfast technical indicators, casts a shadow over SHIB’s short-term potential. Investors should remain cautious and closely monitor these developments as further price decreases seem probable.
