Shiba Inu (SHIB), the popular meme coin, is facing a wave of selling pressure after losing a crucial support level in the past 24 hours. This breach has injected uncertainty into the market, raising concerns about further declines.
Profits Evaporate as SHIB Nosedives
Investors who piled into SHIB during its consolidation phase are feeling the sting of recent losses. The meme coin’s price has plummeted in recent days, reaching its lowest point in several months. Data from the Global In/Out of the Money (GIOM) indicator paints a grim picture. A staggering 66.75 trillion SHIB tokens, worth roughly $1.38 billion, were purchased within the $0.00002100 and $0.00002500 price range. These investors were likely anticipating profits as SHIB remained consolidated.
However, the recent breakdown shattered those hopes. With the current price hovering around $0.00002084, many are now underwater on their holdings.
Technical Indicators Flash Bearish Signals
The bearish sentiment is further amplified by technical indicators. The Relative Strength Index (RSI), a tool used to gauge price momentum, currently sits firmly in the bearish zone. This indicator, which ranges from 0 to 100, suggests overbought conditions above 70 and oversold conditions below 30.
Shiba Inu’s RSI is currently below the neutral mark of 50 and continues to decline due to the bearish pressure. In fact, it has reached its lowest point since October 2023, highlighting the significant momentum towards lower prices.
Shiba Inu Price Prediction: Brace for Impact?
SHIB had been consolidating between $0.00002835 and $0.00002093 for nearly two months. While many investors anticipated a breakout towards the upper end of this range, the price unfortunately dipped below the crucial support level. Currently, analysts predict further declines, with potential lows reaching $0.00001600 or even $0.00001473.
However, a glimmer of hope remains. If SHIB manages to reclaim $0.00002093 as support, the consolidation might resume, offering investors a chance to recoup their losses and potentially invalidate the bearish predictions.
Only time will tell if Shiba Inu can weather this storm. Investors are advised to closely monitor the price action and technical indicators for any signs of a reversal or a continuation of the downward trend.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
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