Shiba Inu (SHIB) Still Bearish Despite Shibarium Launch: New Lows in Sight?

20 Sep 2023 by Crypto Presale 2 min read

The price of SHIB has fallen by 1% in the last 24 hours, down 6.5% in 7 days, and has returned -9% since the start of the year against Bitcoin’s 62%. This shows SHIB is in a very bearish state.

Despite the highly anticipated launch of Shibarium, Shiba Inu (SHIB) continues to face a bearish trend. The crypto community eagerly awaited Shibarium's launch, hoping it would boost SHIB's value. However, despite this significant event, SHIB's price struggles have left many questioning whether new lows are imminent.

Technical Analysis

Daily Timeframe

Source: TradingView

Similar to many cryptocurrencies, SHIB had a strong start in 2023, surging nearly 90% from its 2022 lows. However, a shift in market sentiment occurred following the US SEC's legal actions against major centralised exchanges like Binance and Coinbase, along with cases involving some major altcoins. This change in sentiment has resulted in a continuous decline for coins like SHIB.

In the daily timeframe, SHIB is currently trading around $0.0000073. This is below the 50-day EMA price of $0.0000079 and the 200-day EMA price of $0.000009, which confirms SHIB is in a bearish state. Also, the Relative Strength Index (RSI) is in the 42% band, which shows that the sellers are dominant. If there is no positive news that can attract more buyers to the project, SHIB might crash to a low of around $0.00000631 soon.

4 Hour Timeframe

Source: TradingView

In the 4-hour timeframe, SHIB is slowly retesting a broken support and forming a triangle pattern. A break below this triangle might see SHIB fall as low as the 0.0000063 price level. Also, the RSI is currently at the 50.17 mark. Which shows indecision between the buyers and the sellers. If the sellers overpower the buyers, they will take over and push the price further downward.

New Lows For Shiba Inu in Sight?

Source: IntoTheBlock

On-chain, there is a massive reduction in the number of large Shiba Inu holders. The 90-day change indicates a massive reduction of -85.92% in the number of large SHIB holders. This sharp decline means that a significant portion of large investors in SHIB have been selling their holdings over the past three months. Such a notable decrease in large holders is a sign of changing sentiment among SHIB whales. This might mean there is a loss of confidence in SHIB's short-to-medium-term prospects.

This, in addition to the negative prediction from the technical indicators, might mean SHIB isn’t done falling and might soon reach a new low in the coming weeks.

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