Following its recent approach to the $0.0002167 resistance, the popular meme coin Shiba Inu has exhibited massive downward pressure, with its price currently facing a 3-day bearish streak. As of press time, the token exchanges hands at $0.00001782, reflecting a 7.87% dip in the last 24 hours and an over 18% slump from the $0.00002167 barrier.
This adverse price action further aligns with the halting growth of the layer-2 scaling solution, Shibarium. Upon its debut, Shibarium was anticipated to catalyze SHIB’s price revival, yet recent data paints a gloomy picture. Since September 27, key metrics such as daily transactions, new accounts, and new contracts on the Shibarium network have plummeted, contributing to the token’s bearish sentiment.
This slowdown in network activity has raised concerns among traders and analysts hoping for renewed momentum in the cryptocurrency’s price action. Moreover, the token’s failure to break past the $0.0002167 barrier has left it vulnerable to further declines, and as of now, it is targeting the $0.0000161 price level as the next potential support zone.
Another critical signal contributing to Shiba Inu’s recent price decline is the marked drop in large transaction volumes, specifically those surpassing $100,000. According to data from IntoTheBlock, the volume of such high-value transactions has plunged by over 50% in the last 24 hours. The total value of these large trades now stands below $40 million, a sharp contrast to the more active trading environment seen during Shiba Inu’s upward runs.
Technical Indicators Signal a Strengthening Bearish Momentum
The RSI indicator on the daily chart shows that Shiba Inu is currently in the overbought region, indicating a bearish dominance in the cryptocurrency market. Positioned at 61.52 below the signal line and pointing downwards, the RSI indicates immense space for further downtrend in the short term before the neutral 50 area is reached.
The MACD index, on the same accord, shows a shift in sentiment from bullish to bearish as the MACD line changes its direction toward the downside. A crossover with the signal line could further confirm the strengthening bearish momentum in Shiba Inu’s price action.
Supporting this bearish outlook is the MACD’s histogram chart, which shows decreasing green bars toward the zero line. This implies that selling pressure is increasing, which could possibly lead to a further decline in the cryptocurrency’s value.
Shiba Inu Targets $0.0000161 Next
The bearish sentiment in the SHIB token is expected to persist in the short term, with the potential to reach a target of $0.0000161 next. According to technical analysis, this area is anticipated to act as a key support level where buyers may step in to protect it. However, if this level is breached, it could signal a continuation of the downtrend in Shiba Inu’s price, possibly targeting the $0.00001473 level before attempting another bull run.
Conversely, a shift in sentiment could push the token’s value to retest the $0.00002167 resistance level, with the possibility of surpassing it this time round. The DMI indicator supports this momentum as its +DI at 36.3296 is higher than the -DI at 13.3759, indicating the market favours the bulls. The ADX reading of 36.7178 also suggests the bullish trend is still strong in the long term and could last longer.
Also Read: XRP Tests the $0.66 Barrier; Is a Rally or Correction Next?
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