Indicators suggest potential market rebalancing for Shiba Inu

In the last 24 hours, Shiba Inu has seen a decrease of 12.66% in value, with its price currently at $0.00002438. Despite this decline, there was a surge in trading volume, which rose 165.80%, totaling $1.2 billion. This increase in trading activity comes against the backdrop of a broader market downturn as Bitcoin struggles to break the $70,000 resistance level. The correlation between Bitcoin’s performance and altcoins like SHIB is a well-established market dynamic that continues to play a crucial role in fluctuating prices.

Despite the downtrend, technical indicators offer a mixed outlook for SHIB. A key sign of potential recovery is its position above the 200-day simple moving average (SMA), a bullish signal in technical analysis. The SMA indicates a possible underlying positive momentum that could cushion the cryptocurrency from further losses.

Looking ahead, an important event to monitor is the impending convergence between SHIB’s price and the 50-day exponential moving average (EMA). This anticipated technical event often serves as a dynamic support level, potentially leading to a bullish outcome. The convergence with the 50-day EMA may attract investors looking for favorable entry points, thereby providing a floor for the current price.

SHIB price analysis reveals a day of contention for the meme-inspired cryptocurrency, with its trading activity indicating a struggle to maintain upward momentum. The chart shows that SHIB is experiencing resistance near the $0.00003014 mark, with the price experiencing a slight pullback to the support level at $0.00002233. This pullback indicates a cooling period after its recent volatility.

A closer look at the exponential moving averages (EMA) indicates that SHIB is currently trading below the shorter-term EMAs (20 and 50 days), indicating potential bearish sentiment in the near term. However, the price remains above the longer-term 100- and 200-day EMAs, which could act as a cushion against a significant decline, maintaining optimism for a mid- to long-term recovery.

The moving average convergence divergence (MACD) sits below the baseline, reinforcing the immediate bearish pressure. Despite this, the closeness of the MACD line to the signal line may indicate that bearish momentum is not strongly entrenched and could turn with sufficient buying pressure.

The Stochastic RSI tells a more compelling story, dipping into the oversold region with a reading that suggests the potential for a reversal should the buyers enter. This could indicate that the market is ready for a swing in sentiment, especially if external market conditions or positive news regarding SHIB catalyzes interest.

The trading volume shows no significant increases, indicating a period of indecision among traders. As SHIB continues to test key support and resistance levels, the next 24 hours could be critical in determining whether the price will regain lost ground or face further setbacks.

On-chain data from IntoTheBlock shed light on the sales pressure experienced by Shiba Inu. There was a marked decline in sales, as indicated by the shift in active address profitability. Currently, 74.6% of SHIB holders are ‘in the money’, suggesting a balanced buying and selling climate. Additionally, the decline in year-to-date activity among ‘in-the-money’ addresses, which fell below 18%, implies that holders are choosing potential future gains over immediate profit-taking.

The transition of 4% of SHIB’s circulating supply from short-term to medium-term holders in the past week contributed to a decrease in selling pressure. This shift indicates a more stable holding pattern, as medium-term holders are less likely to sell at the first sign of price increases.

Despite recent challenges, SHIB remains a highly liquid asset within the cryptocurrency market. However, it is essential to note that SHIB has seen only 14 green days in the past 30, indicating a positive trading frequency of 47% in this time frame. Market sentiment remains cautious, with investors eyeing the psychological and technical support levels around $0.00002229, $0.00001725 and $0.00001024 for potential buys.

While SHIB’s performance over the past year has been notable, with a significant rise in its price, its current status below the all-time high reflects the significant market correction it has faced. The token’s future price trajectory is likely to be influenced by broader market conditions and investor sentiment, which remains closely tied to Bitcoin’s performance.