In recent developments, Shiba Inu (SHIB), the second-largest meme coin by market capitalization, has been under the spotlight despite its ongoing price consolidation. The crypto asset has caught the attention of major players in the cryptocurrency space, as highlighted by the on-chain analytics firm IntoTheBlock. On December 18, 2024, the firm reported a staggering 238.58% surge in SHIB’s large transaction volume within a 24-hour timeframe.
Shiba Inu (SHIB) Bearish Outlook
The significant transaction volume coincided with SHIB facing selling pressure and developing a bearish price action pattern near a crucial resistance level. This bearish sentiment emerged against a backdrop where prominent cryptocurrencies like Bitcoin (BTC) and XRP were experiencing substantial upward momentum. The current market conditions suggest a cautious outlook for SHIB amidst the broader crypto market trends.
SHIB Technical Analysis and Upcoming Levels
Delving into the technical aspects, CoinPedia’s analysis indicates that SHIB has formed a bearish inverted cup and handle pattern on its daily chart. This pattern is taking shape at a pivotal resistance level, suggesting a potential breakdown. Historical price trends suggest that if SHIB breaks below the $0.0000258 mark and sustains a daily close under this level, there is a substantial likelihood of a 20% decline, potentially reaching the $0.0000206 level in the near future.
SHIB has been in a state of price consolidation for over a month, with no significant upward or downward movements. However, recent price behaviors point towards possible downside momentum, characterized by increased selling pressure and potential price declines. Notwithstanding these bearish signals, there’s a silver lining in SHIB’s Relative Strength Index (RSI), which stands at 55. This indicator implies that the asset still has room to rise, as it remains below the overbought territory.
Current Price Momentum
At present, SHIB is trading near $0.000026, experiencing a 2.65% decline over the past day. During this timeframe, SHIB’s trading volume has decreased by 17%, reflecting reduced engagement from traders and investors in light of the bearish outlook. This contraction in trading activity may suggest a wait-and-watch approach among market participants, anticipating clearer signals before making significant moves.
In summary, while Shiba Inu (SHIB) currently grapples with a bearish market sentiment and price consolidation, its RSI suggests potential upward movement. Investors and traders should closely monitor technical indicators and market trends to make informed decisions about SHIB’s future trajectory.
