Discover Why the Shiba Inu Price is Facing Challenges Even With 64% of Investors Banking on a Surge
The recent price action of Shiba Inu (SHIB) indicates that the cryptocurrency is experiencing resistance around the $0.00001400 mark, with a potential pullback to the $0.00001200 support level. Despite this, the recent upgrade of the Shibarium network has led to increased burns, raising the question of whether this development will positively impact SHIB’s performance.
SHIB Nearing Key Support
The SHIB price has decreased by 4% in the last 24 hours, reaching $0.00001368, while trading volume has surged by 41.2% during the same period, suggesting an increase in selling pressure.
Following the Shibarium network upgrade on August 9, the Shiba Inu burn rate experienced a significant surge, inspiring optimism among investors.
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Technical analysis indicates that SHIB is currently in a downtrend, with the price below both the 50-day and 200-day exponential moving averages (EMAs), signalling a bearish trend. Furthermore, the 50-day EMA is positioned below the 200-day EMA, confirming a bearish signal.
The immediate resistance levels for SHIB are approximately $0.00001401 and $0.00001575, corresponding to the 50-day and 200-day EMAs, respectively, while the nearest support zone lies at $0.00001340. A more significant support level can be found around $0.00001250.
The Relative Strength Index (RSI) is at 41.19, nearing oversold territory, suggesting a potential bounce despite the bearish trend. Additionally, the Chaikin Money Flow (CMF) indicates rising sell pressure, reinforcing the bearish outlook.
The recent breakdown from a rising wedge pattern signals a bearish movement, potentially targeting the $0.00001250 level if the current support fails.
Market sentiment reveals that a majority of traders (64.18%) are Long on SHIB, and if the price rises above $0.000016, over $6.7 billion worth of SHIB will transition into profitability according to IntoTheBlock data. Furthermore, the SHIB Sharpe ratio stands at 2.98 as per Messari Research data, indicating a bullish outlook due to the potential for high reward relative to risk.
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Cryptolifedigital is a cryptocurrency blogger and analyst known for providing insightful analysis and commentary on the ever-changing digital currency landscape. With a keen eye for market trends and a deep understanding of blockchain technology, Cryptolifedigital helps readers navigate the complexities of the crypto world, making informed investment decisions. Whether you’re a seasoned investor or just starting out, Cryptolifedigital’s analysis offers valuable insights into the world of cryptocurrency.
