The Shiba Inu (SHIB) is making headlines again, but this time for all the wrong reasons. The popular meme token has been under sustained selling pressure, leading to a sharp decline at key support levels.
Despite the recent launch of Shibarium, a blockchain platform designed to enhance the SHIB ecosystem, bearish sentiment seems to have a firm grip on the token’s price chart, raising concerns about the token’s long-term prospects.
The cracks in SHIB’s armor became apparent when it broke through the key $0.00000807 support level, causing its price to drop by 7.3% over the past seven days. Currently, SHIB is trading at $0.00000764, up a small 1.5% over the past 24 hours, as reported by Coingecko. However, these numbers only tell part of the story.
Bearish indicators abound for Shiba Inu
A more in-depth look at technical indicators revealed in a recent report reveals a grim outlook for SHIB. At press time, the Chaikin Money Flow (CMF) has fallen sharply and is at zero.
This means that buying pressure is insufficient and capital outflows are strong. Moreover, the Relative Strength Index (RSI) remains in a downtrend and hovers above the oversold territory, highlighting the lack of demand for SHIB.
Interestingly, the report also states that levels where shorts may take profits could become price reversal zones for longs, similar to price action observed in early June. However, Coinglass’ 24-hour liquidation data suggests that a bullish move is unlikely in the near term.
Shiba Inu: The Indian Connection
Despite the challenging times facing SHIB, it continues to make waves on WazirX, one of India’s leading cryptocurrency exchanges. According to a recent tweet from the exchange, SHIB has firmly secured its place among the top three most traded digital currencies in August, alongside giants like Bitcoin and XRP.
According to a report, the trend mirrors the performance observed in June and July, where the tokens showed resilience, often trading in sync with market heavyweight Bitcoin.
SHIB’s lackluster performance in the face of Shibarium’s launch and bearish technical indicators raises concerns about its long-term prospects.
At the same time, a price reversal cannot be ruled out, and the recent decline in SHIB may just be a bullish opportunity in disguise.
