Shiba Inu (SHIB) is currently experiencing a phase of uncertainty, as its price remains stable without any noticeable upward movement. Despite technical indicators showing a pattern of declined peaks and troughs, the absence of a sharp value drop suggests that the market might be in a consolidation phase prior to another movement.
How is the Technical Landscape Shaping Up?
Maintaining its downward trajectory, SHIB’s 50 and 100-day exponential moving averages are providing significant resistance. Meanwhile, the 200-day average remains high, indicating no immediate shift in the primary trend. A breakthrough beyond the 50-day average is necessary before considering a potential trend reversal, emphasizing the current state of market uncertainty.
What Does On-Chain Data Reveal?
Recent on-chain data reveals that about 192 billion SHIB left exchanges in a day, signifying possible transfers to cold storage or accumulation activities. Historically, net exchange outflows have led to significant price increases, suggesting that buyers might be accumulating SHIB while prices are low.
Additionally, the SHIB ecosystem is under observation due to rising transaction volumes on the Shibarium network and the reactivation of the token burn mechanism. These factors maintain long-term optimism despite their minimal immediate impact on SHIB’s price.
The broader crypto market’s low volume affects many altcoins, including SHIB, resulting in sideways movement. Market-wide risk appetite is vital for any recovery, not just for SHIB alone.
Experts concur that SHIB hasn’t yet shown bullish signs; however, the panic-selling phase seems to have eased. For a short-term rally, volume growth and surpassing the 50-day average are crucial, otherwise, sideways movements may continue, testing investors’ patience.
In the realm of Dogecoin (DOGE), social media interactions and payment integration rumors have kept it prominent. Despite recent activities within its tight price range, DOGE has not achieved a robust breakout.
“While we haven’t seen an upward trend yet, the market is in a better position as the panic-selling wave has calmed down.” – Market Expert
Navigating these dynamics will be crucial for investors as SHIB continues to face market headwinds. The potential for price shifts hinges on broader market conditions and investor sentiment, thus requiring careful monitoring of both technical and on-chain developments.
