Shiba Inu (SHIB) price will likely find some resistance when it comes to recovery since the meme coin is losing its investors’ confidence.
This could lead to the altcoin continuing its ongoing downtrend, which might send it below $0.00002000.
Shiba Inu Whales Take a Step Back
Shiba Inu’s price has failed to breach the downtrend it has been stuck in for weeks. While the broader market cues have not been supporting a rise, the lack of support from SHIB holders has been a larger bane.
Whales are some of the most important cohorts when it comes to meme coins. This is because they significantly dominate the circulating supply. Thus, their actions tend to sway the price more than any other group of investors.
These whales for SHIB at the moment, however, are not a boon at the moment. Over the past two months, their participation has seen consistent declines. Their trading volume has dropped from an average of $221 million to $60 million at the time of writing.
This is evidence of the large wallet holders stepping back from participating in the network, which is a bad sign for the meme coin.
In addition, the broader market does not support Shiba Inu’s price either. The Relative Strength Index (RSI) is failing to close above the neutral line.
RSI is a momentum oscillator measuring the speed and change of price movements, typically ranging from 0 to 100, with levels above 70 indicating overbought conditions and below 30 signaling oversold conditions.
Read More: How To Buy Shiba Inu (SHIB) and Everything You Need To Know
Despite breaching into the bullish zone twice now, the indicator has struggled to persist above it. Sitting in the bearish zone below the neutral line of 50.0 is a sign that the bearishness could continue.
SHIB Price Prediction: Breaking Through the Downtrend Is Necessary
Shiba Inu’s price has been stuck in a downtrend for over two months. Multiple attempts have been made to breach this trend line by the meme coin, but to no avail. Trading at $0.00002271 at the time of writing, SHIB is now vulnerable to losing the support of $0.00002093.
If the aforementioned bearish cues continue to dominate the price action, Shiba Inu’s price might end up below $0.00002000. This would result in a potential drawdown to the support at $0.00001473.
Read More: Shiba Inu (SHIB) Price Prediction 2024/2025/2030
However, if the downtrend line is broken through and SHIB ends up breaching past the resistance at $0.00002835, it could invalidate the bearish thesis. Consequently, the meme coin would be able to flip the crucial resistance of $0.00003000 into support.
The post Shiba Inu (SHIB) Outlook: Implications of Escaping the Downtrend appeared first on BeInCrypto.
