Shiba Inu Price Struggles to Rise Above Resistance
Shiba Inu (SHIB), the second-most popular meme coin, is facing challenges in its price recovery. Despite a brief spike over the weekend, SHIB is currently down 1.8% and trading at $0.00000724. The coin’s price has been unable to break through the seller congestion at the 21-day Exponential Moving Average (EMA) and the key barrier at $0.000008. On the downside, support has been provided by an ascending trendline that bulls must defend to avoid it turning into a resistance level.
The Uncertain Path to Recovery
While the Moving Average Convergence Divergence (MACD) indicator suggests a potential buy signal, there is uncertainty surrounding SHIB’s sustainable recovery to $0.00001. Traders are not confident that a trend reversal will occur, as SHIB has struggled to maintain an uptrend since its pre-Shibarium launch rally. The coin’s reaction to the support near $0.000007 will determine its next move.
Weakness in Bullish Momentum
If support at $0.000007 weakens, investors may choose to capitulate and traders may switch to shorting SHIB. The Relative Strength Index (RSI) already indicates that bulls lack the strength to sustain the uptrend. If the price drops below $0.000007, it could become a resistance level, as seen in previous instances.
Technical Outlook and Potential Bearish Outcome
SHIB’s technical outlook in shorter timeframes remains negative, supported by a sell signal from the MACD indicator. The SuperTrend indicator also suggests a bearish outcome is likely. However, if bulls manage to weaken resistance at $0.0000075, more buyers may enter the market and push the price towards $0.000008 and $0.00001. On the other hand, a drop below $0.0000072 could reinforce the bearish grip and trigger another sell-off.
Dogecoin Outperforms Shiba Inu
Comparatively, Dogecoin has been a better performer than SHIB. Investing the same amount in DOGE and SHIB over a year would have yielded higher returns with DOGE. This indicates that investors have seen more success with Dogecoin compared to Shiba Inu.
Hot Take: Shiba Inu Struggles to Find Momentum
Shiba Inu’s price recovery is currently in jeopardy as it faces resistance and struggles to maintain bullish momentum. Despite some positive indicators, traders remain uncertain about its ability to reverse the downtrend and achieve sustainable growth. Support levels are crucial in determining SHIB’s next move, while weakening support could lead to further selling pressure. Meanwhile, Dogecoin continues to outperform Shiba Inu, highlighting the challenges faced by SHIB in gaining investor confidence.
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