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SHIB’s Downward Spiral Continues: Bulls Struggle to Regain Momentum

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Shiba Inu

  • SHIB’s price remains in a downward trend since mid-April, following a rejection at the $0.0000117 resistance level.
  • Bearish pressure has prevailed, resulting in losses of around 15.5% in May and further anticipated declines.

SHIB, the popular cryptocurrency, has surpassed PEPE in terms of trending searches on LunarCrush, raising hopes of a potential rally.

Source: LunarCrush

Despite SHIB’s positive on-chain metrics, some market indicators still point to a bearish trend. While SHIB outperformed the meme-inspired PEPE, signaling its growing popularity within the crypto community, it remains uncertain whether this is an early indication of an upcoming price surge.

Notably, SHIB has maintained its position as the most traded token among the top 100 ETH whales, highlighting its appeal to influential investors.

However, given the burn rate of SHIB tokens experienced a significant spike, with a staggering increase of over 20,000% in the past day alone. This burning of tokens, along with other transactions, has resulted in the elimination of 3,034,309,519 SHIB tokens over the last 24 hours.

In the previous week, SHIB’s price experienced a marginal decline of 0.38%, according to CoinMarketCap. Currently, SHIB is trading at $0.000008798, with a market capitalization of $5.1 billion.

Could a potential bull run be in for SHIB?

Bullish sentiments have struggled to gain traction in the price action of SHIB. The bulls made an effort to establish a foothold around the $0.0000099 area, which coincided with a bullish order block from March.

Some signs also suggest a potential trend reversal for SHIB. Net deposits of SHIB on exchanges have been low compared to the previous seven days, indicating reduced selling pressure. Nevertheless, the number of active addresses has remained high, indicating increased usage of the meme coin.

Shiba Inu Price Chart (Source: Tradingview)

Furthermore, SHIB’s Relative Strength Index (RSI) is currently in an oversold position, which can potentially lead to increased buying pressure and drive up its price. factors that may hint at the possibility of a trend reversal in the near future.

While SHIB’s overtaking of PEPE in trending searches is a positive development. Investors should remain cautious and consider additional market indicators before celebrating any potential rally.

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