The Recent Downtrend of Shiba Inu: A Closer Look at the Market
Shiba Inu, a popular meme coin, has experienced a significant downturn in recent days, with its Price facing a 3-day bearish streak. Currently trading at $0.00001782, the Token has witnessed a 7.87% drop in the last 24 hours and an over 18% decline from the $0.00002167 resistance level.
This downward trend in Price is closely tied to the sluggish Growth of Shibarium, a layer-2 scaling solution introduced to catalyze SHIB's Price resurgence. Unfortunately, Data since September 27 reveals a decrease in key metrics such as daily transactions, new accounts, and new Contracts on the Shibarium network, contributing to the overall negative sentiment surrounding the Token.
Traders and analysts are concerned about the lack of momentum in Shiba Inu's Price action, particularly its inability to surpass the $0.0002167 barrier. This failure has exposed the Token to further declines, with the current target set at the $0.0000161 support level.
The Impact of Decreasing Large Transaction Volumes on Shiba Inu
Another significant factor contributing to Shiba Inu's Price decline is the sharp drop in large transaction volumes, specifically those exceeding $100,000. Data from IntoTheBlock shows that the volume of such high-value transactions has decreased by over 50% in the last 24 hours, with the total value now below $40 million. This decline is a stark contrast to the more active trading environment observed during previous upward movements.
Technical Indicators Point Towards a Strengthening Bearish Trend
Technical indicators further support the bearish momentum in Shiba Inu's Price action. The Relative Strength Index (RSI) on the daily chart indicates an overbought condition, signaling bearish dominance in the cryptocurrency Market. Similarly, the Moving Average Convergence Divergence (MACD) index shows a shift from bullish to bearish sentiment, with the potential for a further downtrend.
The MACD histogram chart reinforces this bearish outlook, displaying decreasing green bars towards the zero line, indicating an increase in selling pressure that could lead to a further decline in Shiba Inu's value.
Shiba Inu's Next Price Target: $0.0000161
The prevailing bearish sentiment in the SHIB Token is expected to persist in the short term, targeting the $0.0000161 level next. This area is viewed as a critical support level where buyers may intervene to defend it. However, a breach of this level could indicate a continued downtrend, potentially reaching the $0.00001473 level before any significant bullish movement.
On the contrary, a change in sentiment could propel the Token towards retesting the $0.00002167 resistance level, with a potential breakout this time around. The Directional Movement Index (DMI) indicator supports this upward momentum, with a higher +DI than -DI, indicating Market preference for bullish trends. The Average Directional Index (ADX) reading suggests a strong bullish trend in the long term.
As the Market continues to react to these developments, it remains to be seen how Shiba Inu will navigate the current challenges and potentially regain its upward momentum in the future.
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