Shiba Inu (SHIB) is currently experiencing a bearish trend, according to recent price action and technical indicators. Fibonacci levels suggest that SHIB prices may drop towards the lows observed in late February.
Despite a 38% bounce from these lows over the past two days, SHIB has struggled to break through the former support level of $0.0000178, which now serves as resistance. This resistance may lead to further price declines.
Additionally, although SHIB appears undervalued in the short term and has seen a recent price bounce, network growth has slowed. The key question is whether the bulls can drive prices higher in the near future.
Shiba Inu’s Bearish Price Action and Technical Indicators
The 1-day chart for Shiba Inu (SHIB) shows a firmly bearish trend. Following a breakdown from its trading range, SHIB has been consistently forming lower highs and lower lows. The Relative Strength Index (RSI) remains below the neutral 50 level, reinforcing the downtrend.
Source: SHIB/USDT on TradingView
The Directional Movement Index (DMI) indicates that the -DI and ADX have been above 20 since June 14th, signaling a strong downtrend. This trend has continued without significant changes.
Additionally, the 78.6% Fibonacci retracement level has been broken and is now acting as support. This suggests that a further downward movement to the 100% level, or potentially beyond, is likely for the meme coin.
Shiba Inu’s Distribution Trends and Selling Pressure
In the final week of May, Shiba Inu’s mean coin age began to trend downward, indicating increased distribution. This metric has yet to show an uptrend, reflecting ongoing steady selling and minimal accumulation across the network.
Source: Santiment
On July 6th, a spike in dormant circulation occurred as prices rebounded, which might signal upcoming selling pressure. Meanwhile, the number of daily active addresses has remained steady compared to the previous month.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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