Shiba Inu faces bearish pressure with declining momentum as the price looks for a floor.
Shiba Inu (SHIB) has been struggling to find momentum as Christmas approaches, with market sentiment appearing increasingly indecisive. The meme coin has experienced a decline of 1.7% in the last 24 hours, with the price fluctuating between $0.00000697 and $0.00000717. This fluctuation suggests a dull market, as the price is now sitting at the lower end of its range.
Over the past 7 days, SHIB has dropped by 10.4%, reflecting ongoing weakness, while the 14-day performance shows a more substantial decline of 18.7%. The cryptocurrency’s performance in recent weeks has been marked by sharp drops, but with moderate consolidation around $0.000007. Can the Shiba Inu price find a bottom here?
Can Shiba Inu Find a Floor
Notably, the TradingView chart for Shiba Inu shows that the price is moving toward critical support levels. After a breakdown on December 18, SHIB faced a rejection at the 1 Fibonacci level around $0.0000075563, which had previously acted as a crucial support zone during recent downtrends.
The price now remains trapped within a broader bearish range, with the next key floor appearing at 1.618 Fibonacci extension around $0.0000063511. A failure to reverse back above the $0.0000075563 level could push SHIB lower towards this extended support zone.
Looking at the Stochastic RSI indicator, SHIB is hovering above the oversold level, with values at 25.17 (blue) and 29.21 (orange), suggesting a bearish momentum. The Stochastic RSI is not yet in the oversold region, indicating that further downside could still be possible before any potential recovery.
However, if the indicator shows signs of turning upwards from these levels, and the blue line surges over the orange line, it could signal a bullish reversal in the short term.
SHIB Seeing Strong Bearish Sentiment
Meanwhile, a separate chart from Coinglass shows SHIB’s Volume-Weighted Funding Rate, providing key insights into market sentiment. The green areas signify periods when long positions are favored, with long traders paying shorts, while the red areas represent bearish sentiment, with short traders dominating.
As the price and funding rate dip into negative territory, it suggests a stronger bearish market sentiment, often leading to a decrease in SHIB’s value during those periods. The funding rate’s shift into the negative zone consistently correlates with price drops, as observed between late November and December. However, past performances do not always guarantee future results.
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