Like many market assets, the Shiba Inu (SHIB) price has experienced a major correction recently. Within the last 60 days, SHIB’s price has fallen by 25% and currently trades at $0.000010.
Despite brief upticks, SHIB has failed to establish a sustainable upward trend. As volatility rocks both traditional and digital asset markets, SHIB’s current setup suggests that downside risk may still outweigh recovery potential in the short term.
SHIB Struggles to Escape Correction
Last December, SHIB’s price rallied to $0.000034 amid bullish sentiment centered around a favorable crypto environment. But since Jan. 20, when Donald Trump was inaugurated, the cryptocurrency’s value has struggled amid high volatility.
According to the daily chart, the token remains trapped within a descending channel. A descending channel, also known as a falling channel, is a bearish price pattern that forms when the price moves between two downward-sloping parallel trendlines.
The upper trendline connects the lower highs (resistance), while the other connects the lower lows (support). At press time, SHIB’s price tests the upper falling trendline at $0.000011.
However, indicators like the Chaikin Money Flow (CMF) have dropped below the zero signal line. The CMF measures the level of accumulation and distribution around a cryptocurrency.
When the reading is above the signal line, it indicates rising buying pressure. Therefore, the drop to -0.12 indicates rising selling pressure.
If the trend remains the same, SHIB’s market value might not move closer to $0.000015.
Resistance Strong
The In/Out of Money Around Price (IOMAP) also suggests that SHIB’s price might continue to fall. The IOMAP shows support and resistance by looking at the volume of unrealized profits and losses.
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The higher the volume of profits, the stronger the support. On the other hand, a higher volume in less indicates resistance.
At press time, the major resistance lies around $0.000013. At this price range, nearly 20,000 SHIB addresses are holding over 16 trillion tokens at a loss.
Due to this, SHIB’s price might experience selling pressure as it attempts to move toward this level. If sustained, SHIB’s price might fall lower than $0.000010.
SHIB Price Analysis: Accumulation Stagnant
Zooming into the daily chart, CCN observed that the On Balance Volume (OBV) has remained flat. The OBV adds volume on days when the price closes higher.
If OBV rises while the price is flat or falling, it can be a bullish divergence. On the other hand, when the OBV drops while the price rises, that’s a bearish divergence.
A breakdown could be brewing with SHIB’s price stuck in a range and accumulation non-existent. If this situation continues, SHIB might fall below $0.000010, reaching a new low in as many months.
However, a rise in the OBV reading could invalidate this bias. In this case, SHIB’s price might climb to $0.000016.
The market value might rise to $0.000020 in a highly bullish case.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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