Shiba Inu (SHIB) has recently been under the spotlight as it grapples with mounting selling pressure. After a brief surge, the memecoin has struggled to sustain its bullish momentum, particularly after reversing from its 50-day Exponential Moving Average (EMA). As of press time, SHIB is trading at $0.0000144, marking a nearly 2% decline over the past 24 hours.
Shiba Inu’s Technical Struggles
The SHIB daily chart paints a troubling picture for the token. Following a lengthy downtrend marked by a descending channel, Shiba Inu managed a notable rebound off the $0.0000128 support level. This initial recovery helped SHIB break free from its downtrend channel. However, the 50-day EMA has proven to be a formidable barrier, causing the price to reverse and nullify recent gains.
At present, the 20 EMA (red) and the 50 EMA (cyan) are both trending slightly downward, indicating a bearish edge. If the current selling pressure continues, SHIB could face a near-term downtrend. Traders should closely monitor the support range between $0.0000132 and $0.0000128. A fall below these levels could trigger further declines, exacerbating the current bearish sentiment.
Technical Indicators and Market Sentiment
The Relative Strength Index (RSI) is hovering around the 47 mark, reflecting a neutral to bearish sentiment. A continued dip below this midline could intensify selling pressure, potentially pushing SHIB further down. Additionally, the On-Balance-Volume (OBV) indicator is showing a downward trajectory, suggesting that selling volume is surpassing buying volume. However, a significant rebound in OBV could signal a bullish divergence, offering a sliver of hope for SHIB bulls.
Resistance and Support Levels
Traders are eyeing the $0.0000132 support level closely. A rebound from this zone could indicate a potential recovery, whereas a failure to hold could lead to deeper declines. On the flip side, a breakout above the $0.0000155 resistance might signal a reversal in SHIB’s fortunes, paving the way for a push towards the $0.0000174 level.
Derivatives data reveals further challenges for SHIB. Open interest has decreased by 5.55% to $32.16 million, suggesting a reduction in speculative interest. Despite a 12.66% increase in trading volume to $88.86 million, the long/short ratio remains below 1, with a 24-hour ratio of 0.7455. This indicates a greater number of short positions compared to longs. Additionally, liquidation data shows that long positions are being liquidated at a higher rate, reinforcing the bearish outlook.
Also Read: Shiba Inu (SHIB) Dips 40% After DAO Launch – But Experts Predict 400% Surge by 2030
As always, Shiba Inu traders should keep a close eye on broader market movements, particularly Bitcoin’s price action and overall market sentiment. These factors could provide critical insights into SHIB’s next potential move.
In summary, Shiba Inu faces a crucial juncture. With key support levels in sight and bearish indicators at play, the next few days will be critical in determining whether SHIB can overcome its current hurdles and stage a meaningful recovery.
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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