CoinDesk Report:
The outlook for Shiba Inu appears highly pessimistic based on price trends and technical indicators. Fibonacci levels indicate that SHIB prices could decline to the late February lows.
The price of Shiba Inu [SHIB] has rebounded 38% from recent lows over the past two days but has failed to reach the former support level at $0.0000178, which is now acting as resistance. This could potentially lead to further price declines.
A recent report by AMBCrypto suggests that SHIB is undervalued in the short term, yet network growth has also decreased. Following the rebound, the question remains whether the bull market can sustain higher prices.
Will Shiba Inu’s price drop another 30%-45% next?
The price action on the daily chart strongly suggests bearish sentiment. Following a breach of the range, SHIB continues to form a series of lower highs and lows. The RSI remains below the neutral 50 level, reinforcing the bearish outlook.
DMI indicates that since June 14th, both -DI and ADX have been above 20, signaling a strong downward trend in progress. This sentiment remains unchanged.
The 78.6% Fibonacci retracement level has been broken and reversed to support. Hence, the meme coin could potentially move down to the 100% level, or even further south.
On-chain metrics indicate weakness in SHIB bulls.
The average coin age began declining in the final week of May, indicating distribution, with the metric yet to show an uptrend. This signals stable selling across the network with minimal accumulation.
Read Shiba Inu’s [SHIB] price predictions for 2024-25.
With the price rebound, dormant supply spiked on July 6th, potentially signaling early warnings of additional selling pressure compared to last month, while daily active addresses remain stable.
Disclaimer: The provided information does not constitute financial, investment, trading, or other types of advice, and is solely the opinion of the author.
