The Downfall of Shiba Inu: A Closer Look at the Bearish Indicators
Shiba Inu (SHIB) has been in the spotlight once again, but this time for all the wrong reasons. The popular meme token is facing sustained selling pressure, leading to a significant breach in a critical support level. This has raised concerns about the token’s long-term outlook.
Despite the recent launch of Shibarium, a blockchain platform aimed at enhancing the SHIB ecosystem, the bearish sentiment seems to have a firm grip on the token’s price chart.
The crack in SHIB’s armor became evident as it surpassed the crucial $0.00000807 support level, resulting in a 7.3% decline in its price over the past seven days. As reported by CoinGecko, SHIB is currently trading at $0.00000764, with a modest 1.5% gain in the last 24 hours. However, these numbers only reveal part of the story.
The Grim Picture: Bearish Indicators for Shiba Inu
A recent report delves deeper into the technical indicators, painting a grim picture for SHIB. The Chaikin Money Flow (CMF) has experienced a substantial decline and currently rests at the zero mark, indicating a lack of buying pressure and strong capital outflows. Additionally, the Relative Strength Index (RSI) remains in a downtrend, lingering just above the oversold zone, highlighting the absence of demand for SHIB.
Interestingly, the report also suggests that the levels at which bears could potentially profit might serve as a price reversal zone for bulls, drawing parallels with price action observed in early June. However, the 24-hour liquidation data from Coinglass suggests a muted possibility of a bullish uptick in the near future.
Shiba Inu’s Influence in India
Despite the challenging times for SHIB, it continues to make waves on WazirX, one of India’s leading cryptocurrency exchanges. According to a recent tweet from the exchange, SHIB remains one of the top three most traded digital currencies in August, alongside giants like Bitcoin and XRP.
According to a report, this trend mirrors the performance observed in June and July, where these tokens showcased resilience and often traded in tandem with Bitcoin, the market’s heavyweight.
The Uncertain Future of Shiba Inu
The lackluster performance of SHIB in the face of the Shibarium launch and the bearish technical indicators raise concerns about its long-term prospects. However, it’s important to note that a price reversal cannot be ruled out, and SHIB’s latest dip could potentially present a bullish opportunity in disguise.
Hot Take
Shiba Inu’s recent struggles highlight the volatile nature of the cryptocurrency market. While it faces challenges, there is still a chance for a turnaround. Keep a close eye on the indicators and market trends to make informed decisions when it comes to investing in SHIB.
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