Shiba Inu (SHIB) has recorded a notable 7.5% price increase in the past 24 hours, climbing to $0.000014. However, the memecoin’s bullish run may be short-lived as key technical indicators suggest looming resistance that could erase recent gains.
SHIB Recovery at Risk
One major hurdle for SHIB’s price is the In/Out of Money Around Price (IOMAP) indicator, which highlights significant resistance levels. With SHIB trading at around $0.000013, data from IntoTheBlock reveals that over 16,000 addresses hold more than 11 trillion SHIB tokens at an unrealized loss between $0.000013 and $0.000014.
Since the volume of holdings at this level is higher than at $0.000012, this resistance zone could prevent SHIB from further upward movement. A failure to break through could result in a price pullback.
Bullish Momentum Slows Down
The Moving Average Convergence Divergence (MACD) indicator further suggests that SHIB’s momentum is losing steam. While the MACD remains positive, it has declined from previous levels, signaling a weakening bullish trend. Additionally, the 12-day Exponential Moving Average (EMA) and 26-day EMA are converging, indicating uncertainty in the trend direction.
SHIB Price Analysis: What’s Next?
Further bearish signals appear on the Awesome Oscillator (AO), which has turned negative, reinforcing the weakening momentum. Likewise, the Relative Strength Index (RSI) has dipped below the neutral 50 level, supporting the bearish sentiment.
If these indicators hold, SHIB could drop to $0.000011, and in a worst-case scenario, fall below $0.000010. However, should buying pressure increase, SHIB might challenge the 0.786 Fibonacci retracement level at $0.000016. In an extended rally fueled by improved market sentiment, SHIB could surge to $0.000020.
Shiba Inu’s price surge has sparked optimism, but technical indicators point to potential headwinds. Traders should closely watch resistance levels and market trends to assess SHIB’s next move. Whether SHIB overcomes its obstacles or succumbs to selling pressure remains to be seen.
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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