LUCKNOW (CoinChapter.com)—Shiba Inu (SHIB) coin technical analysis shows that it is on the verge of a potential 25% crash. The meme coin is currently trading within a descending channel, reflecting a persistent downtrend. SHIB coin is struggling to break free from this downward spiral.
Resistance Confluence Poses a Major Hurdle
One of the most significant technical challenges for Shiba Inu coin is the confluence of resistance around the $0.00001534 level. A resistance level is a price point where many sellers are willing to sell, making it hard for the price to go higher. Every time SHIB’s price gets close to this level, it gets pushed back down.
Additionally, a previously supportive zone around $0.00001764 has become resistant, preventing the price from rising further. This is a bearish signal, suggesting the price might continue to fall.
The Relative Strength Index (RSI) is also showing signs of weakness. Even when the price of SHIB briefly increases, the RSI isn’t rising as much as it should, indicating that the buying pressure isn’t strong. The RSI has struggled to rise above the 62.15 level during recent rallies.
You May Also Like: Could Shiba Inu (SHIB) Coin Lose Its Second-Place Meme Coin Spot to Telegram’s DOGS Token?
Shiba Inu’s price action remains confined within a well-defined descending channel. Despite occasional breakout attempts, each rally has been contained within this channel. The bearish structure remains intact as long as SHIB stays below the channel’s upper boundary.
The lower boundary of the channel now serves as a potential downside target, with key support levels at $0.00001263 and $0.00001079. A failure to hold these supports could lead to further declines, pushing SHIB towards the $0.00000940 level. This represents a potential 25% drop from current prices.
Whales Are Accumulating SHIB — A Potential Rally Ahead?
Despite this bearish outlook, on-chain indicators give some hope. Shiba Inu exchange reserves have been declining. This could be a sign of accumulation, as holders often move their assets to private wallets for long-term storage.
Interestingly, whales shows a potentially bullish sentiment around SHIB. There has been a significant increase in whale activity over the past month. Specifically, whale inflows have surged by 218.84% over the last 30 days.
Even more telling is that outflows from these large holders have simultaneously decreased by 60.67%. This reduction in selling pressure suggests that whales are buying more SHIB and holding onto their existing holdings. This is a positive sign for Shiba Inu.
You May Also Like: Will Shiba Inu (SHIB) Coin Reach $1?
