Shiba Inu Price: What’s Influencing the Downtrend?
The Shiba Inu price has been experiencing a prolonged downtrend, largely influenced by several factors. Let’s explore the key elements impacting the price movement:
Positive Rebound Backed by Weak Momentum
The Shiba Inu price recently rebounded from the local support level of $0.00000934 on February 24th. However, this reversal is still supported by weak momentum, making it necessary for buyers to break out above $0.00001 in order to escape the current consolidation phase. Even if a breakout occurs, it is expected to only result in a modest 5-7% surge and hit the long-standing resistance trendline.
This resistance trendline is part of a falling wedge pattern that has contributed to the current downtrend in Shiba Inu. As long as this channel pattern remains intact, the memecoin will continue its downtrend.
Sale of SHIB Tokens by Whale
A whale, known as 0x30e, recently offloaded 421.6 billion SHIB tokens worth $3.98 million. This transaction included transferring 311.6 billion SHIB to Binance and selling 110 billion SHIB for 1.01 million USDT on a decentralized exchange (DEX). The whale incurred a significant loss of $6.32 million, equivalent to a 61.4% decrease, after holding these tokens for 2.5 years. This sale may further contribute to the current downtrend of SHIB.
How Does This Affect Shiba Inu’s Future?
The ongoing consolidation and these influencing factors have significant implications for Shiba Inu’s near-term future:
Continued Downtrend
As long as the falling wedge pattern remains intact, Shiba Inu will likely continue its downtrend. The lack of strong bullish momentum and the presence of resistance levels indicate that the memecoin may struggle to gain positive momentum in the near future.
Potential Entry Opportunity
On the other hand, those who are bullish on Shiba Inu may view the current consolidation phase as an opportunity to enter the market at a more favorable price. They might wait for a breakout above the overhead trendline before making their move.
Technical Indicators
Let’s take a look at a couple of technical indicators to gain further insights into Shiba Inu’s price:
- Bollinger Band: The narrow range of the Bollinger Band indicator indicates high volatility in Shiba Inu.
- Relative Strength Index (RSI): The daily RSI slope, currently at 56%, reflects a neutral to positive outlook among traders.
Hot Take: Shiba Inu’s Future Outlook
Considering the current market conditions and influencing factors, it’s crucial to stay cautious when it comes to Shiba Inu’s future:
Downtrend Continuation Expected
The ongoing downtrend in Shiba Inu is likely to persist as long as the falling wedge pattern remains intact. The lack of strong bullish momentum and the presence of resistance levels suggest that any potential upside may be limited.
Potential Opportunities for Bulls
If you’re bullish on Shiba Inu, keep an eye on potential breakout opportunities above the overhead trendline. These breakouts could provide a better entry point and the possibility of short-term gains.
Overall, it’s important to stay updated with the latest market developments and monitor key indicators to make informed decisions when it comes to Shiba Inu. Remember to assess the risk and consider your own investment strategy before making any moves in the market.
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