Shiba Inu has experienced a 15.17% drop, with key support levels under test.
- Shiba Inu could plummet further if key resistance levels are broken. Metrics suggested a potential bearish run.
Shiba Inu [SHIB] has experienced a 15.17% drop in the last six days. With its price closing below the 100 EMA support level and opening below it in the current trading session, this indicates a substantial bearish signal.
SHIB’s prices may plummet to $0.000019 support level if the bearish momentum spirals into a breakdown of the price below the $0.0000205 consolidation support level.
As of this writing, AMBCrypto’s look at CoinMarketCap data showed that SHIB was priced at $0.00002215, down 4.36% in the last 24 hours and 7.22% in the last seven days.
SHIB’s market capitalization dropped by 4.21% to $13.08 billion, while the trading volume increased by 21.31% in the last 24 hours.
Source: TradingView
Shiba Inu’s losses strain the chain
AMBCrypto further analyzed Santiment’s daily transaction volume in profits and the transaction volume in profit-to loss ratio. The current drop in the profit bars was a concerning sign.
The ratio data indicated fluctuating volumes of profits to loss, with several spikes in loss volume in the recent price drops. This suggested that more traders were selling at a loss-probably due to panic of further declines.
Source: Santiment
AMBCrypto also looked at SHIB’s Supply on Exchange per Santiment, which showed an uptrend with a recent spike on supply.
This means increased selling pressure from the investors looking to exit positions — a bearish signal.
Source: Santiment
The stochastic RSI indicator was oversold at 2.49 at press time, suggesting that a likely short-term reversal cannot be completely ruled out. However, the overall trend remains bearish, with SHIB trading below the moving averages during this period.
What’s next for SHIB?
With increased number of spikes in the profit-to-loss ratio, ascending supply on exchanges and decline in transaction volumes in profit, market sentiments for Shiba Inu were bearish, with critical support levels being tested.
The price may continue to plummet further to the $0.000019 support level unless a substantial buying interest or a reversal signal is experienced.
However, if a reversal occurs in the short term, SHIB may pull back to $0.000024 resistance level.
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