Shiba Inu, often dubbed the “Dogecoin killer,” has been causing ripples in the cryptocurrency markets with its significant user participation and speculative trading. However, like other speculative assets, it has experienced considerable volatility. SHIB token is currently priced at $0.00001691, representing a 2.31% fall over the past day. This dip in price raises questions about overall trends and technical indicators for future movements.
Bears rule over SHIB’s market
A closer look at the price charts of Shiba Inu reveals a bearish trend dominating daily charts over recent weeks. From a peak in late July, SHIB’s price has gradually fallen to linger around 49 on the Relative Strength Index (RSI) which is neutral but leaning toward being oversold. This means that SHIB might be undervalued at present levels suggesting that it could rally if the market situation improves.
Another layer of insight comes from the Moving Average Convergence Divergence (MACD). It shows a bearish crossover at present, implying that bearish momentum is outweighing bullish pressure for now. Nevertheless, there is little gap between MACD lines and signal lines, so any positive market catalysts would point out an imminent reversal.
SHIB has established strong support levels at $0.0000165, which can act as a rebound base for prices given positive external factors such as general crypto-market rallies or positive Shiba Inu news.
Conversely, immediate resistance to watch right now stands at $0.0000172.A consistent breach above this level could invalidate the current bearish outlook, setting SHIB on course toward higher resistance levels, possibly retesting early July highs.
Shiba Inu (SHIB), alongside its fellow meme coins, has recently gone through significant dips whereby, according to CoinGecko data, they have lost 3.5% within the last 24 hours. This decline is part of a broader meme coin sector dip, which witnessed a general decrease, with coins like Dogecoin and Dogwifhat losing 2.5% and 6%, respectively. On the other hand, while big cryptocurrencies such as XRP perform well, meme coins have struggled to keep up any momentum. Furthermore, Santiment analysis found that whale activities remained muted, with no considerable movements noted during the past week. Such inaction from major holders generally signals consolidation or hesitation among important investors.
There are, however, subtle signs of an uptick in investor interest in Shiba Inu despite recent price declines. The meme coin had increased exchange outflows and reduced the supply of SHIB tokens available for sale on exchanges last week. These indicators show that investors move their holdings from exchanges into private wallets, thus harboring confidence about holding the asset for the long term and expecting future gains. This change is a silver lining for SHIB owners, signaling a possible gradual reversal from recent sell-offs if buying pressure builds up and more investors start holding instead of disposing of their tokens on exchanges where they were purchased.
