Shiba Inu (SHIB) has experienced a significant price decline in recent days, losing over 8% of its value in the last week and 14% over the previous month. On May 2nd, the token sank to $0.000020, prompting concerns about further downside potential.
This downturn follows a period of positive news for Shiba Inu, including substantial fundraising efforts and token burns, which suggests other factors may drive the price action.
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Trading Volume Surge Raises Concerns
Shiba Inu saw a notable surge in trading volume on May 1st, reaching $127 million after hitting a 70-day low on April 28th. Despite a slight 2% price rebound on May 2nd, this spike sparked speculation about increased selling pressure – a potential sign of continued bearish momentum.
However, over the last 24 hours, this speculation has gradually calmed. Data from CoinMarketCap reveals an 18% decrease in SHIB’s trading volume, suggesting a slowdown in network activity and potentially reduced interest in the coin.
Technical Indicators Suggest Downward Pressure
Technical analysis supports the possibility of a price decline. The Bollinger Bands indicator reveals SHIB trading below its 20-day Simple Moving Average (SMA), implying a bearish bias in the short term. Should the token fail to hold the critical support level of $0.0000204, a breakdown toward the $0.000015 area could materialize.
Conversely, a bullish reversal would require SHIB to break above the $0.000028 resistance level. According to data from CoinMarketCap, SHIB has experienced a 5.6% increase within the last 24 hours and is currently trading at $0.00002336.
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Price Trends in Context
It’s important to note that Shiba Inu’s recent price action defies some expectations, especially given the positive developments within the project last month. The $12 million fundraising and significant token burns have seemingly had little immediate effect on the token’s price. This underscores the unpredictable nature of cryptocurrency markets, where sentiment and other technical factors play a major role in determining price movements.
Cryptocurrency markets are known for volatility. The information provided in this article should not be considered investment advice. It’s crucial to do your research and due diligence before making investment decisions.
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