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Shiba Inu (SHIB) has been on a bearish rally in the last 24 hours, experiencing a dramatic decline in its price trajectory. The cryptocurrency, known for its meme-inspired origins, has faced a significant reversal, signaling a shift in market sentiment towards a bearish outlook.
The price action of Shiba Inu over the past day indicates a clear downtrend characterized by lower highs and lower lows. This downtrend suggests a shift in market sentiment towards bearishness as SHIB struggles to maintain its recent price levels. The resistance level at approximately $0.00002701 has proven to be a significant barrier, reflecting the lack of buying pressure to sustain upward momentum.
SHIB/USD 24-hour price chart (Source: CoinMarketCap)
Accompanying the downtrend is an increase in trading volume, indicating heightened activity in SHIB transactions. However, this increased volume has failed to reverse the downward trajectory, reinforcing the prevailing bearish sentiment in the market. With a 7.20% decrease in both price and market capitalization over the day, SHIB faces challenges in regaining its footing amidst market uncertainty.
The recent price action of Shiba Inu (SHIB) indicates a notable reversal, particularly evident in its failure to breach crucial resistance levels. After attempting to ascend toward the 50-day Exponential Moving Average (EMA), SHIB encountered resistance and veered away from this critical indicator. This reversal suggests a cooling off of SHIB's momentum, aligning with the prevailing trend of diminishing market strength in the cryptocurrency sphere.
The market sentiment surrounding SHIB reflects a state of indecision, as evidenced by neutral trading volume and the Relative Strength Index (RSI) hovering around the midpoint value of 50. Such conditions typically denote neither an overbought nor an oversold condition, indicating a lack of clear directionality in the market sentiment toward SHIB.
SHIB's inability to secure a breakthrough above the 50-day EMA underscores the prevailing market conditions characterized by a scarcity of buying pressure. The cryptocurrency's immediate support level is identified at $0.000021, with a breach below this mark potentially signaling further downward movement. In such a scenario, SHIB could find support near the lower boundary of its trading channel, approximately around the $0.000012 threshold.
SHIB/USD 24-hour price chart (source: TradingView)
However, a resurgence in SHIB's price trajectory hinges on its ability to rally back and conquer key resistance levels. A successful breach above the 50-day EMA could pave the way for targeting higher resistance zones, with the recent high around $0.000030 presenting an initial area of contention. Nevertheless, achieving upward momentum would necessitate substantial market participation and a shift in sentiment to fuel such a resurgence.
Despite the current bearish sentiment, fundamental developments within the Shiba Inu ecosystem offer glimpses of potential future growth. Shiba Inu's strategic initiatives, including the development of its Fully Homomorphic Encryption (FHE) blockchain in collaboration with Zama, underscore its commitment to innovation and expansion. The FHE technology holds promise in revolutionizing data privacy and trust within the cryptocurrency landscape, potentially reshaping how personal and financial information are managed.
SHIB Reserves (source: CryptoQuant)
Moreover, the decline in SHIB reserves on centralized cryptocurrency exchanges, coupled with a decrease in immediate selling pressure, suggests a potential scarcity of tokens and hints at future price appreciation, assuming demand remains steady or increases. Additionally, developments such as the growing SHIB burning rate and the ongoing progress of Shibarium, Shiba Inu's layer-2 scaling solution, further contribute to a positive outlook for SHIB's ecosystem.
