Shiba Inu has experienced a significant decline in price, dropping by 25% in the span of 10 days. Despite positive events such as a $12 million fundraise and token burns, the short-term price of the SHIB token has not seen much improvement. After the ecosystem team’s fundraise, the price of Shiba Inu began to fall and has since experienced a 26.74% decline, reaching a low of $0.000020 on May 1.
Although there has been a slight recovery of 2% within the daily timeframe, market trends suggest that the upward trajectory may not be sustained in the near future. Trading volume for Shiba Inu has shown a surge, with a $127 million increase from a recent low. However, this increase in trading volume, coupled with the rapid decline in price, is seen as a bearish signal by strategic investors.
This surge in trading volume may be attributed to panic selling or profit-taking rather than genuine buying interest. The divergence between trading volume and price movement suggests a lack of sustainable support for the asset’s price, which could lead to further downward pressure in the short term.
The current market dynamics indicate that Shiba Inu’s price may be at risk of losing the critical support level of $0.000020. The Bollinger bands indicator also supports this bearish forecast, as SHIB is still trading below the 20-day SMA price, indicating that the bears are in control of the short-term market trend.
If Shiba Inu fails to hold the support territory of $0.0000204, a major price breakdown towards $0.000015 could occur. On the other hand, if market momentum swings positively, the bulls must surpass the resistance level of $0.000028 to regain control.
It is important to note that this article is for informational purposes only and should not be considered financial advice. Readers are advised to conduct thorough research before making any investment decisions.