Shiba Inu hovers around a critical zone, and analysis suggests its price action around this level will determine whether it will rebound or see lower prices.
Shiba Inu surprisingly recorded a daily gain yesterday. While Bitcoin and most altcoins capitulated, the doggy-themed meme coin played contrarian, with a solid 3.3% price appreciation.
Nevertheless, Shiba Inu is down considerably in higher timeframes, correcting 8% and 25% in the past week and month, respectively. Meanwhile, SHIB’s show of strength yesterday has seen it hold a crucial price zone, which will determine its next course of action in the near term.
Shiba Inu At Major Crossroad
TradingView analyst Paul Endeo highlighted why Shiba Inu has been on the downside despite a bullish ecosystem. In his Tuesday commentary, he cited a potential head and shoulder pattern and bearish network conditions as reasons for the asset’s price decline.
The adverse conditions include dwindling institutional interest, weak network growth, and a lack of profitability among Shiba Inu holders. Notably, a recent the Crypto Basic report shows that on-chain activity for Shibarium has dropped drastically amid a lackadaisical price action.
Meanwhile, Endeo stressed the importance of Shiba Inu’s current level in determining its next short-term direction. The market watcher noted that, depending on its reaction to this zone, the second-largest meme coin by market cap would either rebound over 20% or nuke 11% to new lows.
Currently trading at $0.00001426, Shiba Inu trends around the support level at $0.0000147. The commentator asserted that the prominent meme coin needs to hold this level for a quick price rebound.
If SHIB holds the support, Endeo predicts it would recover 20% to this month’s price high of $0.00001718. However, a converse situation will push the token further downward, with an 11% southward trend to $0.00001261 on the cards.
Shiba Inu Analysis
Meanwhile, on-chain analysis shows an interesting development in the Shiba Inu ecosystem. Data from IntoTheBlock shows a spike in large transactions on the network, an indication of renewed whale interest.
In the past 24 hours, users made 101 transactions exceeding $100,000, a signal of growing whale interest in the ecosystem. Notably, this figure increased substantially from 44 seven days ago.
Nonetheless, other indicators have flashed bearish momentum. Net network growth, the “in the money” metric, and market user concentration have also indicated pessimism around the ecosystem.
SHIB trades at $0.000014226 with a relative strength index (RSI) of 44.91.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
