Shiba Inu’s price is currently at a critical support level, with market analysis suggesting that its movement in the coming days will determine whether it experiences a strong recovery or continues its downward trend. Despite recent struggles, SHIB demonstrated resilience by posting a 3.3% daily gain, even as Bitcoin and most altcoins saw declines. However, the asset remains under pressure on higher time frames, with a 7% drop over the past week and a 24.6% decline over the past month.
Token Faces Key Support Level
Analyst Paul Endeo has pointed to multiple bearish factors affecting Shiba Inu’s price, including the formation of a potential head-and-shoulders pattern and declining network conditions. This comes shortly after another analyst recently warned about a possible death cross, adding to concerns. Investor confidence seems to be fading with weakened institutional interest, network growth has slowed, and fewer SHIB holders are currently in profit. In addition, recent data shows a decline in Shibarium’s on-chain activity, reflecting a lack of enthusiasm among investors.
Despite these challenges, the token is currently holding a critical support level at $0.00001439, which will likely determine its next price movement. According to Endeo, maintaining this support could lead to a 20% recovery, pushing SHIB back to its recent high of $0.00001718. Conversely, if the asset fails to sustain this level, it risks a potential decline to $0.00001261.
On-Chain Data and Market Outlook
While Shiba Inu’s price action has been underwhelming, on-chain metrics reveal some positive developments. According to data from IntoTheBlock, there has been a significant increase in large transactions, signaling renewed interest from major investors. There has been a notable surge in large transactions in the last 48 hours, with 101 transactions exceeding $100,000, doubling the 44 transactions seen the previous week. This uptick suggests that some whales are stockpiling SHIB despite the broader market uncertainty.
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However, other indicators paint a more cautious picture. Network growth remains weak, fewer addresses are making a profit, and overall market sentiment around Shiba Inu continues to lean bearish. The concentration of SHIB holders also indicates that a relatively small number of investors control a significant portion of the supply, which can contribute to price volatility.
Currently, the asset is trading at $0.00001439, with a relative strength index (RSI) of 44.91, indicating that it is neither overbought nor oversold. The next few trading sessions will be crucial in determining whether the asset can hold its support level and stage a recovery or if it will face further losses.
The digital asset is at a decisive point, with its ability to maintain key support levels dictating its short-term price trajectory. While some on-chain data suggests renewed interest from large investors, other indicators signal ongoing weakness in the ecosystem. If the token can be above $0.0000147, it could see a strong rebound; however, failure to hold this level could lead to further losses.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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