Shiba Inu (SHIB) has recently experienced a sharp decline, nearing its yearly lows amid an overall market recovery led by Bitcoin (BTC). Recent market analyses suggest that SHIB could face further declines in the upcoming days despite some short-term recoveries observed.
Is Shiba Inu’s Price Chart Unfavorable?
Shiba Inu has broken down from a rare falling wedge pattern, indicating substantial downward pressure. This technical formation, typically a sign of potential bullish reversal, currently suggests otherwise for SHIB. The token’s price movements signal weakness, and there is a possibility of a 16% drop from its current value.
Presently, SHIB’s price trends downwards within a descending channel, showing strong bearish momentum. On August 3, the price broke down from the falling wedge, a formation that usually indicates a trend reversal. However, SHIB’s current trajectory remains negative.
What Do Technical Indicators Say for SHIB?
Technical indicators present a bleak picture for Shiba Inu. The Relative Strength Index (RSI) stands at 47.61, nearing the neutral zone, suggesting the asset is neither overbought nor oversold. The Chaikin Money Flow (CMF) is at 0.03, indicating slight buying interest.
During the recent minor uptick, trading volume decreased consistently, pointing to bearish volume-price divergences. Open Interest (OI) for SHIB has dropped by 4.54% over the last 24 hours, indicating capital outflow from the Shiba Inu market, reinforcing the continuation of the bearish trend.
Key Takeaways for Investors
- SHIB’s price approached yearly lows during the market crash.
- Despite Bitcoin’s recovery, SHIB is expected to continue its decline.
- Technical indicators suggest further downside for SHIB.
- Failure to re-enter the falling wedge formation could see SHIB drop another 16%.
- Breaking above the 50 EMA could initiate a bullish trend.
In conclusion, Shiba Inu faces a challenging outlook with potential further declines. Investors should monitor key support and resistance levels while paying close attention to technical indicators for any signs of a trend reversal.