Will SHIB drop another 10% as bulls fail to defend this crucial price point?

Disclaimer: The knowledge introduced doesn’t represent monetary, funding, buying and selling, or different varieties of recommendation and is solely the author’s opinion.

• Shiba Inu was more likely to endure losses within the coming weeks because the bearish development remained sturdy.
• The newest bounce has confronted rejection from the $0.0000086 area- which signaled demand was weak. 

Shiba Inu [SHIB] incurred huge losses in worth over the previous week. On 13 August, the bias was strongly bullish for the memecoin. Moreover, it seemed to be headed towards the excessive from April. It was in a powerful uptrend on the every day chart.

Learn Shiba Inu’s [SHIB] Price Prediction 2023-24

This development started in early July, from a zone of demand that had beforehand been examined in June 2022. On the time of writing, Shiba Inu was headed towards this zone as soon as extra — can the consumers halt the bearish advance?

Shiba Inu’s momentum shifts bearish as sellers drive a retracement of many of the previous month’s positive aspects

Supply: SHIB/USDT on TradingView

After 13 August, SHIB confronted losses that amounted to 33.1% inside 4 days as the costs crashed from $0.0000108 to $0.00000725 on 17 August. There was a bounce on 18 August as SHIB climbed to retest the $0.0000086 space, the place it confronted rejection thereafter.

The market construction on the 1-day chart confirmed sturdy bearishness, and the Relative Energy Index (RSI) additionally fell beneath impartial 50 to bolster this concept. The On-Steadiness Quantity (OBV) caught to a assist stage from earlier in August however the Chaikin Cash Circulation (CMF) confirmed important capital move out of the market.

This promoting strain was more likely to drive SHIB again to the $0.000007 zone, the place a bullish order block (crimson field) from 28 June was current. This zone won’t supply a powerful constructive response upon the subsequent retest, as the primary check and subsequent bounce appeared to have reversed from the $0.0000086 resistance up to now two days.

Shiba Inu hinted at a lower in exercise on-chain

Supply: Santiment

The value motion of Shiba Inu highlighted the energy of the bears. But the dormant circulation metric didn’t see a pointy uptick regardless of the heavy promoting strain. This urged many addresses selected to carry on to the meme coin on-chain fairly than dump it in panic.

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The metrics didn’t define a constructive outlook although. The Market Worth to Realized Worth (MVRV) ratio took successful, and the community development additionally fell to the late July lows. The every day lively addresses additionally trended slowly downward over the previous three weeks. Collectively they confirmed decreased consumer adoption and exercise and didn’t mirror bullishly on SHIB.