Shiba Inu's Wild Ride: Why Bullish Signs Have Vanished, Leaving Only Sideways Thrills

Shiba Inu's Wild Ride: Why Bullish Signs Have Vanished, Leaving Only Sideways Thrills

Currently, the cryptocurrency market is experiencing a period of relative stability, with the leading cryptocurrency, Bitcoin, teetering on a critical support level. In contrast, the well-known meme coin, Shiba Inu, has been in a bearish trend since mid-August.

Over the past month, Shiba Inu's native token, SHIB, has seen a significant decline of more than 30%, dropping from its previous value of $0.00001067. As of the time of this writing, SHIB tokens are trading at $0.00000763 when paired with USDT, and there have been no notable price changes in the past 24 hours, as reported by CoinMarketCap.

SHIB on Weekly Chart

Source: Tradingview 

SHIB is currently marking its fourth consecutive bearish candle this week, resulting in a nearly 30% loss in its value. It's important to note that this decline doesn't appear to be driven by any particular catalyst but rather seems to be part of a broader correction in the global cryptocurrency market.

It's worth highlighting that back in June, investors witnessed SHIB reaching its yearly low at $0.00000543. However, it's important to recognize that the current price is significantly higher than this 52-week low. Given this price level, some bearish investors may be considering covering their short positions

SHIB on Daily Price Chart 

Source: Tradingview

Analyzing SHIB's daily price chart, we can observe that it has been trading sideways, hovering just above its 30-day low. This sideways movement is primarily a result of reduced buying interest among investors. The immediate resistance level to watch is set at $0.0000080.

However, the bulls face multiple challenges ahead, given that the Shiba Inu price is currently trading below significant moving averages, including the 20-day, 50-day, 100-day, and 200-day Exponential Moving Averages (EMAs).

Looking at the daily Relative Strength Index (RSI), there are signs of a slight recovery, indicating some potential upward momentum. Conversely, the Moving Average Convergence Divergence (MACD) continues to trend into the negative territory, though it is showing a preference for the bulls.

Also Read: GALA Token's Price Spiral: The Impact of the $130 Million Crypto Heist

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This information is for educational purposes only and does not constitute investment advice. No person should rely on it to make any investment. Investing carries risks, including the loss of capital. All opinions expressed are subject to change without notice. Past performance is not indicative of future results. Always seek the advice of a licensed investment professional before making any investment.