The Shiba Inu cryptocurrency has recently made headlines as its value surged significantly, showcasing its popularity in the meme coin category. With an impressive increase of over 25% in just a few weeks, the interest around Shiba Inu seems to be rekindled. However, this surge has raised questions about the sustainability of its growth and whether it’s about to experience a downturn.
Potential for a Downturn in Shiba Inu’s Price
In recent analyses shared on various platforms, experts have voiced concerns regarding Shiba Inu’s current price levels. For instance, a notable analyst highlights that Shiba Inu is nearing a crucial resistance point. As of the latest assessments, the coin was trading around $0.000014, with a significant resistance looming at approximately $0.00001432. This resistance could act as a barrier, potentially triggering the bears to step in aggressively.
According to the analyst’s interpretation of the coin’s behavior, the proximity to this resistance level signals that a price reversal could be imminent. Should the bearish sentiment gain traction, a failure to breach this threshold may lead to a sharper decline, possibly sending the price back to its previous support levels.
The data presented in the analyst’s charts indicates that a drop to around $0.00001299 could be on the horizon, where support has traditionally held stronger. This forecast is derived from a short-term perspective, as indicated by the 2-hour chart timeframe, suggesting that traders should be prepared for volatile movements ahead.
Conversely, should the price of Shiba Inu break through the identified resistance level effectively, it would challenge the bearish predictions laid out by analysts. Continued upward momentum in the broader cryptocurrency market could also bolster Shiba Inu, allowing it to reach new highs.
Shiba Inu Trading Volume Shows Weakness
Despite recent price shifts, trading volume for Shiba Inu has exhibited weakness, remaining relatively low compared to previous months. Although there has been a slight increase from its lows earlier this year, the overall trading activity has not sustained momentum, averaging around $180 million daily. This trend indicates that trader interest may still be sluggish.
Moreover, another concerning trend highlighted is the drop in open interest for Shiba Inu, which has again fallen below the $300 million mark. With many cryptocurrency investors shifting their focus to emerging meme coins that promise better growth potential, the future engagement with Shiba Inu may continue to dwindle.
