The cryptocurrency market has seen Shiba Inu (SHIB) experiencing a significant downturn, with the price dropping approximately 12.3% over the past seven days. As of December 27, 2024, SHIB is trading at $0.0000208, down from its December 20 peak of $0.0000237. The decline reflects growing bearish momentum, with technical indicators pointing to sustained selling pressure.
RSI Indicates Diminished Buying Interest
The Relative Strength Index (RSI) for SHIB has fallen to 38.2, a decline from 52.1 recorded earlier this week. This drop suggests a notable loss in buying momentum, with the market sentiment shifting further toward bearish territory. While RSI values below 30 typically indicate oversold conditions, SHIB remains above this threshold, hinting at the possibility of further declines before a potential rebound.
Directional Movement Index Highlights Weakening Trend
The Directional Movement Index (DMI) shows a mixed picture for SHIB. The Average Directional Index (ADX), measuring trend strength, is currently at 18.7, down from 21.9 three days ago. Meanwhile, the D- (negative directional indicator) rose to 25.4 from 22.8, suggesting that selling pressure has intensified. Conversely, the D+ (positive directional indicator) dropped to 14.9, further confirming weakened buying activity. This combination highlights that while the bearish trend persists, it lacks significant strength, opening the possibility for consolidation.
Whale Activity and Market Impact
Interestingly, SHIB’s whale activity has seen a sharp increase despite the bearish price movement. On December 25, 2024, large transactions exceeding $100,000 accounted for a 9% rise in total trading volume. Whale wallets transferred over 920 billion SHIB tokens during this period, signaling a strategic accumulation that could influence price recovery.
Support and Resistance Levels to Watch
Current technical analysis identifies $0.0000200 as a critical support level. A breakdown below this level could push SHIB toward $0.0000185, a key long-term support zone. On the upside, resistance at $0.0000220 remains pivotal. A breakout above this level could reignite bullish momentum, potentially targeting $0.0000245 and beyond.
Market Outlook
The broader cryptocurrency market’s performance will play a significant role in SHIB’s price trajectory. Macroeconomic factors, including the U.S. Federal Reserve’s monetary policy updates, have contributed to increased market volatility. Analysts predict that if SHIB maintains support above $0.0000200 and buying interest returns, it could stabilize in the near term. However, sustained bearish conditions might lead to a retest of lower price levels.
In conclusion, Shiba Inu’s recent price decline underscores the challenges faced in a bearish market environment. While some indicators suggest potential stabilization, traders and investors should remain cautious and monitor key technical levels closely.