Shiba Inu (SHIB): Failed Recovery Causes More Volume Drop

As a seasoned researcher who has seen countless market cycles, I must admit that the recent setback of Shiba Inu has left me with a familiar feeling of deja vu. The inability to break above the 100 EMA resistance level is a common tale in crypto, one that often signals a period of consolidation or even a temporary dip in the long-term trend. However, I’ve learned not to underestimate the resilience of this space and the unpredictable twists it can take.

The latest effort by Shiba Inu to recover has fallen short, as the price struggled to surpass the vital 100 Exponential Moving Average (EMA) barrier, leading to a substantial loss of positive momentum. This significant decline in bullish sentiment is causing traders and investors to question if an extended uptrend can materialize. Presently, Shiba Inu is being traded around $0.00002215, marking a reversal from its previous rally attempt.

In simpler terms, the 100 Exponential Moving Average (EMA), around $0.00002255, is acting as a strong barrier for the price. This rejection suggests that negative market sentiment continues and the price movement towards ShibuInu (SHIB) might not be strong enough to break this resistance level. Therefore, the initial attempt to recover has been halted due to this resistance being too high to overcome.

A further cause for concern is the apparent decline in trading volume, which indicates a decline in interest in the token. Lack of market participant support is frequently indicated by lower volume during a failed recovery, which makes it challenging for the price to maintain any bullish momentum. This implies that there is less speculative interest in SHIB — especially since there have not been any notable market catalysts. 

Looking ahead, Shiba Inu could encounter swift backing close to its 200 Exponential Moving Average (EMA), approximately $0.00002055. Should it breach this level, the price may slide more, potentially hitting the psychological support at around $0.0001900. For Shiba Inu to recover its bullish energy and aim for the next resistance at $0.00002494, it must first overcome the 100 EMA situated at $0.00002255.

Despite the broader market growing, Shiba Inu’s subpar performance highlights its struggles in remaining attractive to investors. At present, SHIB continues to face pressure and its fate hinges on attracting new investors and maintaining crucial support points. To ascertain if SHIB might reverse course, closely monitor its trading volume and key momentum indicators that have a direct impact on the trend strength of SHIB.

Read More

2024-12-26 11:56