Despite the ongoing price consolidation in Shiba Inu (SHIB), the popular second-largest meme cryptocurrency by market cap has gained significant attention from crypto giants, as reported by on-chain analytics firm IntoTheBlock. Today, December 18, 2024, IntoTheBlock revealed that SHIB’s massive transaction volume has spiked by 238.58% in the past 24 hours.
Source: IntoTheBlock Shiba Inu (SHIB) Bearish Outlook
This notable volume appeared as SHIB began to experience selling pressure and the formation of a bearish price action pattern near a resistance level. However, the meme coin's bearish outlook came during a period when major cryptocurrencies like Bitcoin (BTC) and XRP witnessed notable rallies.
SHIB Technical Analysis and Future Level
According to CoinPedia’s technical analysis, SHIB has formed a bearish inverted cup and handle price action pattern on the daily chart and is currently on the verge of a breakout. However, this is a resistance level where the meme coin formed this price action pattern.
Based on historical price momentum, if SHIB breaks out of the bearish pattern and closes a daily candle below the $0.0000258 level, there is a strong possibility that it could drop by 20% to reach the $0.0000206 level in the coming days.
However, it has been over a month since SHIB experienced any significant price gains or drops; appears to be in an ongoing price consolidation. But recent price action indicates potential bearish momentum, selling pressure, and price declines in the coming days.
On the other hand, SHIB’s Relative Strength Index (RSI) currently stands at 55, indicating that it is still below the overbought area. This technical indicator suggests that the asset has enough room to move higher in the coming days.
Current Price Momentum
SHIB is currently trading near $0.000026 and has experienced a 2.65% price drop in the last 24 hours. During the same period, its trading volume has dropped by 17%, indicating lower participation from traders and investors amid a bearish outlook.