Shiba Inu (SHIB), the popular meme coin, is currently facing a challenging period, with bearish sentiment dominating the technical charts. Despite a recent surge, the coin’s price remains vulnerable to further declines.
One of the key factors contributing to the bearish outlook is the falling channel pattern on the daily chart. This indicates a broader downward trend, which could limit the upside potential for SHIB.
While SHIB has seen a short-term recovery, it remains below the 50-day exponential moving average (EMA), suggesting that bears are still in control. The evening star pattern at the 50-day EMA further reinforces the bearish outlook.
Also Read: Shiba Inu’s Leash – 107,000 Tokens Protecting 100 Million SHIB
Technical Analysis
From a technical perspective, SHIB is currently trading between the 50-day and 20-day EMAs, indicating a period of consolidation. However, the downward sloping trendline suggests that a bearish reversal is likely.
The Fibonacci levels provide additional insights into potential support and resistance levels. If SHIB breaks below the 23.60% Fibonacci level at $0.00001289, it could face further declines.
Large Holder Activity
The flow of large holders has been mixed. While there has been an increase in inflows, outflows have been even stronger, indicating that bears are maintaining a firm grip on the SHIB price.
Based on the technical analysis and current market conditions, SHIB appears to be headed lower. The bearish channel, falling EMAs, and negative large holder flow all point to a potential decline.
Investors should exercise caution and be prepared for further downside movement in the short term. However, it’s important to remember that the cryptocurrency market is highly volatile, and the situation could change rapidly.
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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