Shiba Inu (SHIB) price has been in a critical phase recently, facing selling pressure and a decline in market cap. The RSI for SHIB has shown a significant recovery from oversold levels, indicating a potential trend reversal. However, the recent decrease in whale accumulation and the formation of a death cross on December 18 raise concerns about immediate recovery prospects.
With the RSI for SHIB currently at 44, the asset is in a balanced position that could suggest further upside potential in the short term. The rapid recovery in RSI also signals a shift in market sentiment towards being more positive. However, traders should monitor whether this momentum can be sustained to determine the future price direction.
The number of Shiba Inu whales holding at least 1 billion tokens increased between December 14 and December 19 but has since reversed course. This decline in whale addresses could indicate a brewing distribution phase, potentially leading to increased selling pressure in the short term. While this doesn’t guarantee immediate price impacts, traders should be cautious of potential downside risks.
SHIB price faces a critical technical juncture with a resistance level at $0.000022. A breakthrough above this threshold could pave the way for higher targets. However, the formation of a death cross on December 18 complicates the technical outlook, suggesting that bearish forces may still dominate the market. If SHIB fails to maintain the crucial support level at $0.00001985, it could experience a deeper correction.
In conclusion, the technical indicators for Shiba Inu (SHIB) suggest conflicting signals for its short-term trajectory. While the RSI has shown a significant recovery from oversold levels, the decrease in whale accumulation and the formation of a death cross raise concerns about immediate recovery prospects. Traders should monitor market sentiment and key support levels to assess potential upside or downside risks in the near future.
