As its price moves below the crucial 200 EMA, Shiba Inu has been having difficulty retaining investor confidence in the face of difficult market conditions. This significant technical indicator often serves as a key benchmark for determining whether an asset is in a bullish or bearish phase.
Regretfully, SHIB is now in a risky position after falling below this threshold. Looking at the broader market, Shiba Inu has underperformed compared to its counterparts. In recent weeks, assets such as XRP and Solana have experienced significant growth, but SHIB has found it difficult to keep up. This relative weakness becomes even more apparent when viewing its chart, which illustrates its difficulty in maintaining upward momentum despite a general bullish sentiment across the market.
One of the biggest obstacles for SHIB to overcome is the 200 EMA, which is presently acting as a resistance level. The likelihood of a significant recovery decreases if this level is not regained. Furthermore, dwindling trading volumes and a dearth of significant inflows point to a lack of interest from institutional and retail investors. Better market sentiment and fresh buying pressure would be necessary for SHIB to recover.
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Regaining the 200 EMA, which indicates a possible change in momentum, would be an important first step. Even so, considering how poorly SHIB has performed in comparison to other elite cryptocurrencies, its road to recovery is probably going to be difficult. The lack of strength relative to other assets is a cause for concern.
With better price performance or stronger fundamentals, investors might decide to put their money into other projects, which would put SHIB at a disadvantage. A major catalyst would be needed to rekindle interest and restore SHIB's prominence even though a recovery is possible. For now, cautious optimism is the best approach for SHIB holders.