Shiba Inu Struggles: Price Under Pressure

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Shiba Inu’s price is currently locked in a battle against resistance at $0.00001400. Support lies at the crucial $0.00001200 level. A potential 17% drop looms before a possible rebound, according to market analysts.

Shibarium Upgrade Ignites Burn Rate, Price Stalls

A recent network upgrade, Shibarium, has sent Shiba Inu’s burn rate soaring. This development injected a surge of optimism into the market. However, the coin’s price has failed to capitalize on the bullish sentiment. In the past 24 hours, SHIB has shed 4% of its value, trading at $0.00001368. Trading volume has spiked by 41.2%, indicating heightened selling pressure.

Technical Analysis: Shiba Inu Bears in Control

Technical indicators paint a bearish picture for Shiba Inu. The price is trapped below both the 50-day and 200-day Exponential Moving Averages (EMAs), confirming the downtrend. Resistance looms at $0.00001401 (50-day EMA) and $0.00001575 (200-day EMA). Support is currently holding at $0.00001340. A breakdown of this level could trigger a deeper decline towards $0.00001250.

The Relative Strength Index (RSI) hovers near oversold territory at 41.19, hinting at a potential price bounce. Conversely, the Chaikin Money Flow (CMF) sits at -0.17, signaling persistent selling pressure.

Investor Sentiment: A Tale of Two Halves

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Despite the price slump, investor sentiment remains somewhat bullish. Data from Coinalyze reveals that 64.18% of traders hold long positions on SHIB. Additionally, Messari Research’s Sharpe ratio of 2.98 suggests a favorable risk-reward profile.

However, the market is wary of a potential $6.7 billion worth of underwater SHIB positions, which could be unleashed if the price surpasses $0.000016.

Conclusion: Shiba Inu at a Crossroads

Shiba Inu is at a crossroads. The recent network upgrade has sparked renewed interest, but the price action tells a different story. Bears currently dominate the market, with the $0.00001200 support level serving as a crucial battleground. Investors must tread carefully. While the potential for a rebound exists, the immediate outlook remains clouded by uncertainty.