A concerning trend in Shiba Inu’s price performance was recently observed. The token’s stability and growth potential have been questioned due to the quick declines that have followed each price increase, even if there have been multiple pumps that indicate a rising presence on the market. These declines have eroded gains made in the token.
SHIB’s price activity presents a picture of volatility and uncertainty when analysed using the accompanying chart. Each time the token has rallied, it has failed to hold onto its upward momentum and has fallen below the $0.00001 mark. This trend is concerning because it suggests that investors are not as convinced as they should be, prioritising profit-taking above the expectation of a large and sustained price gain.
Technically speaking, the $0.000012 mark seems to be where the local resistance for SHIB is established. Price growth has been impeded by this level, which SHIB has been unable to cross on every try. On the other hand, the $0.000009 threshold, which has traditionally seen the emergence of purchasing interest to create a floor for the price, is the location of the local support level.
The reason for caution stems from the fact that SHIB retracts and seems to make increasingly lower highs following each pump—a bearish indication according to technical analysis. According to this trend, investors are less inclined to wager on a higher rise after each peak, choosing instead to lock in their short-term gains and sell their investments.
In addition, there is a decreasing trend in the relative strength indicator, which suggests that the momentum supporting SHIB may be slowing down. The idea that investor fervour is waning is supported by the diminishing volume that coincides with price declines following the pump.
Meme coins such as SHIB are now not exactly exuberant; most retail investors are waiting for the adoption of a Bitcoin ETF and preferring to own “serious” assets that will profit from the industry’s systemic growth.
