Shiba Inu Bearish Streak Deepens: Targets $0.0000161 Support Level

Shiba Inu Bearish Streak Deepens: Targets $0.0000161 Support Level

Following its recent attempt to break through the $0.0002167 resistance level, Shiba Inu, the popular meme cryptocurrency, has faced significant downward pressure. Over the past three days, the token has been stuck in a bearish trend. As of this writing, Shiba Inu is trading at $0.00001782, representing a 7.87% drop in the last 24 hours and a sharp 18% decline from its previous peak at $0.00002167.

This negative price movement has coincided with a stagnation in Shibarium, Shiba Inu’s layer-2 scaling solution. Despite initial expectations that Shibarium would help fuel a price recovery, recent data points to a more concerning outlook. Since September 27, key indicators, including daily transactions, newly created accounts, and the number of smart contracts on the Shibarium network, have all decreased, contributing to the growing bearish sentiment around SHIB.

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The slowdown in network activity has raised alarms among traders and market analysts, who had been hoping for a resurgence in SHIB’s momentum. With the token failing to break above the critical $0.0002167 resistance, it now faces the threat of further declines, with the $0.0000161 level emerging as the next possible support zone.

Adding to the downward pressure is a sharp decline in large transaction volumes, particularly those exceeding $100,000. Data from IntoTheBlock shows that these high-value transactions have dropped by over 50% in the last 24 hours, with the total value of such trades now below $40 million. This marks a stark contrast to the more active trading environment seen during Shiba Inu’s bullish rallies.

Technical Indicators Point to Strengthening Bearish Momentum

On the technical side, the Relative Strength Index (RSI) on the daily chart indicates that Shiba Inu is entering overbought territory, further suggesting that bearish forces dominate the market. Currently sitting at 61.52 and below the signal line, the RSI is pointing downward, indicating there is still room for a further decline before it reaches the neutral 50 mark.

Similarly, the Moving Average Convergence Divergence (MACD) indicator shows a shift in sentiment from bullish to bearish, with the MACD line turning downward. A crossover with the signal line could further confirm this growing bearish momentum. The MACD’s histogram also supports this outlook, with shrinking green bars signaling an increase in selling pressure, potentially leading to a further drop in SHIB’s price, according to recent predictions.

Shiba Inu Aims for $0.0000161 Support

In the near term, bearish sentiment is expected to persist for Shiba Inu, with the token eyeing the $0.0000161 level as the next major support. Technical analysis suggests that this zone could attract buyers looking to defend it. However, should this support level be breached, the downtrend could continue, with the price potentially falling to $0.00001473 before attempting a recovery.

On the flip side, a shift in market sentiment could see SHIB retesting the $0.00002167 resistance, with the potential to break past it. Supporting this possibility, the Directional Movement Index (DMI) shows the +DI at 36.3296, higher than the -DI at 13.3759, indicating that the market still slightly favors the bulls. Additionally, the Average Directional Index (ADX) reading of 36.7178 suggests that the bullish trend remains strong in the long term, hinting that a reversal could last longer than anticipated.