Recent price movements and on-chain metrics indicate that Shiba Inu has been going through a lot. More than 1.2 trillion SHIB tokens have been exchanged in the past day. The asset, which is still in a downward trend, does not seem to be receiving the support it needs from this high transaction volume.
SHIB has been contained within a descending channel as can be seen by examining the SHIB/USDT daily chart. SHIB is having difficulty breaking above significant resistance levels, which is indicative of this downward trend. The 200, 100 and 50 EMAs all show continuous selling pressure.
SHIB/USDT Chart by TradingView
The fact that SHIB's price is below each of these significant moving averages supports the bearish outlook. SHIB is creating lower highs and lower lows, which is a well-known sign of a downtrend, according to the chart. The price is constantly pushed back, resulting in additional declines even in the sporadic attempts to break out of this pattern.
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Further information about the current state of SHIB can be obtained from the on-chain data. There is a substantial movement of the asset with transactions worth $184 million over the last week. Still a number of on-chain signals suggest that the general sentiment is still bearish.
A miserable picture is painted by Shiba Inu's technical indicators and on-chain data. The asset's price is under constant pressure to decline even with a high volume of transactions. According to the charts, the descending channel SHIB entered a few weeks ago got invalidated by the substantial price drop below its lower border.
Unfortunately, things are not looking great for Shiba Inu, and we are unlikely to see a substantial recovery with the substantial retrace on the crypto market in general.
