Shiba Inu (SHIB) failed to maintain its 100 EMA support level, opening below it in the current trading session. This movement below the moving average raises substantial concerns for investors and signals potential negativity. Despite this, the next support level is not far off but lies beneath a crucial resistance level.
The Shiba Inu chart indicates a bearish trend as it struggles to stabilize above the 100 EMA. Increased selling pressure could push the price towards the next major support at $0.000019. The break below this level marks a significant point for SHIB, as it may either serve as a base for a rebound or, if breached, lead to further declines.
SHIB/USDT Chart by TradingView
Technical indicators such as the RSI are displaying bearish signals. The RSI’s proximity to the oversold area suggests that selling pressure might persist. However, if buyers step in to capitalize on the lower prices, the oversold condition could spark a brief rebound.
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Volume Profile And Market Sentiment
The volume profile indicates a decline in trading activity compared to previous sessions. In a downtrend, lower volume usually signifies waning buying interest, making a significant comeback for SHIB more challenging. This declining volume reinforces a pessimistic outlook, suggesting that investors are distancing themselves from the token.
However, a rebound could be imminent if SHIB maintains this level and shows signs of strength. This would indicate that the worst of the selling may have passed.
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Nonetheless, the overall sentiment remains cautious due to the declining volume and persistent selling pressure.
Potential For Rebound
Despite the bearish signals, the situation also presents a chance for a brief rebound. If buyers intervene, taking advantage of the lower prices, the oversold condition may catalyze a temporary recovery. A sustained effort to maintain the current support level could lead to a positive shift in momentum.
While SHIB’s failure to hold the 100 EMA support level and the decline in volume present a negative outlook, there is still potential for a rebound if buying interest returns. Investors should monitor these key levels and technical indicators closely to gauge SHIB’s future movements.
