Shiba Inu (SHIB) has experienced a 10% decline in price over the past week, signaling a weakening momentum in the market. Key indicators like the Relative Strength Index (RSI) and Directional Movement Index (DMI) are reflecting a bearish sentiment among traders. However, despite the current downtrend, the selling pressure may not be strong enough to push the price significantly lower. If the price manages to break above critical resistance levels, it could potentially reverse the trend and regain bullish momentum in the short term.
The RSI for SHIB has dropped to 40.4 from 57 just a few days ago, indicating a loss of buying momentum and a shift towards a bearish sentiment in the market. While the RSI is not yet in oversold territory, the move towards lower levels suggests that sellers are gaining control. This could potentially lead to a further decline in price unless buying interest picks up to reverse the trend.
On the other hand, the DMI chart shows that SHIB’s current downtrend is not very strong, with the Average Directional Index (ADX) dropping to 19.13 from higher levels. The positive directional indicator (D+) has decreased, indicating reduced buying momentum, while the negative directional indicator (D-) has increased, showing an uptick in selling pressure. This combination suggests that sellers are currently dominating the market, but the weakening trend may lead to stabilization or consolidation if buying interest increases.
If SHIB’s downtrend continues, the price could test support levels at $0.0000198. However, if the downtrend gains strength, SHIB’s price may decline further towards potential resistance levels at $0.000018 and $0.0000158. On the other hand, if the price manages to break above the $0.000022 resistance level, it could target higher levels at $0.000024 and $0.000026. These levels will be crucial in determining whether SHIB can reverse its bearish trajectory and move towards a more positive outlook in the short term.
In conclusion, while SHIB is currently experiencing a downtrend with weakening momentum, key indicators suggest that the selling pressure may not be strong enough to push the price significantly lower. If buying interest picks up and the price breaks above critical resistance levels, SHIB could potentially reverse the trend and regain bullish momentum in the short term. Traders should continue to monitor key support and resistance levels to determine the next potential direction of SHIB’s price movement.
