Shiba Inu (SHIB) is currently showing a clear bear market trend in the market, indicating that it may continue to decline in the future and show signs of range consolidation.
The Shiba Inu (SHIB) has shown continued bearish momentum in recent weeks, particularly when it broke out of a long-established trading range on June 14. Although the new trading range provides potential trading opportunities for keen traders, this downward trend has not yet reversed.
Price action and technical indicator analysis:
Over the past ten days, Shiba Inu has traded between $0.0000174 and $0.0000126, with $0.000015 acting as a significant support level in the latest trade. Although there has been a rebound from these lows, accompanied by a significant increase in trading volume, these signs are still insufficient to support a sustained price recovery. Starting in June, on-balance volume (OBV) has continued to decline, indicating continued selling pressure. Additionally, the Relative Strength Index (RSI) spent most of June below the neutral level of 50, only briefly exceeding 60 in early July, which may indicate an emerging but uncertain change in market momentum.
Market sentiment and investor behavior analysis:
The 30-day market cap to real value (MVRV) ratio has been negative since the end of May, reflecting Shiba Inu (SHIB)'s current undervalued status. Despite the generally pessimistic sentiment, this underestimation has not stopped prices from continuing to fall. Recent data has shown a slight increase in the circulating supply of dormant tokens, especially on June 11, suggesting that while it is not suitable for long-term investors to re-enter the market, traders may be able to strategically trade through the highs of the range. Selling operation.
in conclusion:
Overall, Shiba Inu (SHIB) is currently in strong bearish dominance and the bearish trend is unlikely to change unless it can break out of its newly established trading range. While long-term investors are advised to wait for clearer market signals, it is still possible for traders to profit from the current range-bound consolidation with cautious selling at the highs of the range. Market participants should exercise caution and consider the broader market context when developing trading plans.
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