Shiba Inu (SHIB) has fallen 10% in seven days, following its peak on Dec. 7, when it hit its highest levels since January 2024. The recent pullback highlights weakening momentum, with key indicators reflecting a shift in market sentiment.
Although the downtrend currently lacks significant strength, continued selling pressure could push the price towards key support levels. However, a bounce above critical resistance could signal a potential reversal and renewed bullish momentum in the near term.
SHIB's RSI has been neutral since December 20
SHIB’s Relative Strength Index (RSI) is currently at 40.4, down from around 57 just two days ago. This significant drop indicates a loss of buying momentum, with the market leaning towards bearish sentiment.
The move towards lower RSI levels suggests that sellers have gained control, pushing the price closer to oversold territory, although not quite there yet.
NIB RSI. Source: TradingView
RSI is a momentum indicator that measures the speed and magnitude of price movements on a scale of 0 to 100. Values above 70 indicate overbought conditions, which often precede a correction, while values below 30 suggest oversold conditions, potentially leading to a rebound.
With the indicator at 40.4, it remains in a bearish-neutral range, indicating some selling pressure without yet reaching oversold levels. In the short term, this could mean that the price could continue to decline or stabilize near current levels unless strong buying interest resurfaces to shift momentum.
Current downtrend is not that strong
SHIB’s Directional Movement Index (DMI) chart shows its Average Directional Index (ADX) at 19.13, down from its highest levels just three days ago. This decline in ADX indicates that the strength of Shiba Inu’s current downtrend is weakening, although the trend remains intact.
The D+ (positive directional indicator) fell to 16.6 from 23 two days ago, signaling a reduction in buying momentum, while the D- (negative directional indicator) rose to 23.7 from 18.6, reflecting an increase in selling pressure. This combination suggests that sellers currently dominate the market, with buying interest continuing to wane.
SHIB DMI. Source: TradingView
ADX is a trend strength indicator that measures the intensity of a trend on a scale of 0 to 100, without indicating its direction. Values below 20 signal weak trends, while values above 25 represent strong trends. With ADX at 19.13, the downtrend lacks significant strength, despite sellers maintaining control, as indicated by the taller D-.
In the short term, this could mean that SHIB price could see continued bearish pressure, although the weakening trend suggests the possibility of stabilization or consolidation if buying momentum begins to pick up.
Price Prediction: SHIB Back to $0.000015 Soon?
If the current Shiba Inu downtrend persists, the price may soon test the support level at $0.0000198.
If the downtrend regains momentum, the memecoin could continue to decline, with potential resistance levels around $0.000018 and $0.0000158 being tested next.
SHIB Price Analysis. Source: TradingView
On the other hand, if the price manages to resume its uptrend and break above the resistance at $0.000022, the token could target higher levels at $0.000024 and even $0.000026.
These levels highlight the importance of the $0.000022 resistance and $0.0000198 support as key thresholds to determine whether SHIB can reverse its bearish trajectory and regain a more positive outlook in the near term.
The post Shiba Inu (SHIB) Falls, Targets Key Support appeared first on BeInCrypto.
