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Shiba Inu faces price volatility and uncertainty amidst investor skepticism

TL;DR

  • Shiba Inu’s price is erratic, creating uncertainty among investors.
  • Key resistance at $0.000012 and support at $0.000009 are important levels to watch.
  • Due to market doubts, investors are favoring more established cryptocurrencies over meme coins like Shiba Inu.

Shiba Inu (SHIB), a popular meme cryptocurrency, has recently exhibited a worrisome price performance pattern, causing investors’ concerns. Despite experiencing multiple price surges that initially suggest market growth, SHIB has consistently faced rapid declines, eroding gains and raising doubts about its stability and potential for sustained growth.

Volatility and uncertainty plague SHIB’s price action

Shiba Inu’s price action has been marked by extreme volatility and uncertainty. While the token has witnessed several pumps, each surge in price has been quickly followed by a sharp decline on the SHIB/USDT chart, leading to significant losses for investors. This recurring pattern paints a picture of a market plagued by doubt, with profit-taking prevailing over the anticipation of a substantial and lasting price increase.

From a technical standpoint, SHIB faces critical levels of resistance and support. The local resistance for SHIB appears to be firmly established near the $0.000012 mark, consistently thwarting attempts to breach it. Conversely, the local support level is around $0.000009, historically acting as a price floor.

Lower highs signal bearish sentiment

One concerning aspect of SHIB’s price performance is that after each pump, the token not only retraces but also sets progressively lower highs. This is considered a bearish indicator in technical analysis and suggests that fewer investors are willing to bet on further price increases with each spike, opting instead to secure short-term gains and exit their positions. 

Furthermore, the declining trend in the relative strength index (RSI) adds to the concerns, indicating waning momentum. The decreasing trading volume accompanying price drops post-pump reinforces the view that investor enthusiasm for SHIB is cooling off.

Shift in sentiment towards “serious” assets

The sentiment surrounding meme coins like SHIB appears far from euphoric. Most retail investors eagerly await the potential approval of a Bitcoin Exchange-Traded Fund (ETF). They are gravitating towards more “serious” assets that stand to benefit from the broader growth of the cryptocurrency industry.

Disclaimer: The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

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James Kinoti

A crypto enthusiast, James finds pleasure in sharing knowledge on fintech, cryptocurrency as well as blockchain and frontier technologies. The latest innovations in the crypto industry, crypto gaming, AI, blockchain technology, and other technologies are his preoccupation. His mission: be on track with transformative applications in various industries.

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