Despite the recent surge in major cryptocurrencies, Shiba Inu (SHIB) has struggled, with a mere 0.09% increase in value over the past three months. Currently hovering around $0.0000122, SHIB has experienced a 7.2% dip since the year's start. Behind this stagnation lie technical and blockchain indicators suggesting an imminent bearish trend. Decrypting the signals.
On-chain data analysis shows that the percentage of Shiba Inu (SHIB) tokens in profit currently stands at 24.3%, representing an intermediate level between historical highs and lows.
This equilibrium explains why SHIB has remained trapped within a narrow range over recent months: investors are regularly taking profits, without enough new buyers stepping in to support prices.
Furthermore, the chart reveals a bearish divergence between SHIB’s price and its Relative Strength Index (RSI). This suggests weakening bullish momentum, with more significant selloffs than previously seen despite price increases. This pattern often precedes a downward breakout.
Another alarming indicator is the number of addresses withdrawing from exchanges, which has fallen to a one-year low of just 452. This weakness in outflow volumes demonstrates a lack of interest from investors in SHIB, despite price levels near cycle lows.
With these bearish signals, SHIB finds itself vulnerable in the short term. The first resistance is at $0.0000123, followed by a more significant barrier at $0.0000135. Only a breakthrough above $0.0000141 would challenge this bearish scenario and signal a bullish trend reversal.
To the downside, a break below $0.0000119 could pave the way for a further decline towards $0.0000116 or lower, ending the current consolidation phase, but not in the direction investors would hope for.
Although the broader cryptocurrency market has recently displayed positive momentum, Shiba Inu appears to be struggling. Technical and blockchain signals indicate a possible imminent breakout, but likely in a bearish direction. Investors should therefore remain cautious before considering exposure to SHIB in an uncertain market environment.
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Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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