Among the many meme coins that pumped this year, Shiba Inu is likely not one of them.
The only major rally the second-largest meme coin had was in mid-March when the whole market was booming.
However, ever since then, the SHIB price has been trading in a descending channel, as we can clearly see on the SHIB/USD chart below. We marked that channel with blue lines.
A descending channel is a bearish chart pattern where price action is confined between two parallel downward-sloping trendlines.
Source: TradingView
The 2024 yearly high was at that period around $0.000045. Shiba Inu’s price is right now around $0.000015, which is about 66% down from its yearly highs.
In order to break out of this descending channel, the price would need to break the $0.000017 resistance. Again, many popular altcoins were able to break this descending channel since March, but the SHIB meme coin is not one of them.
The next big resistance zone is at the $0.00002 level, which is in line with the 200-day Moving Average (MA). It’s generally considered bearish when a coin is trading below its 200-day MA, as it indicates a long-term downtrend.
Read also: Dogecoin (DOGE) Price Surge Imminent? Expert Predicts $10 Rally as Meme Coin Mirrors Historical Patterns
Shiba Inu Price Forecast – Mixed Signals
The Relative Strength Index (RSI) is in the 30-40 zone across all timeframes. This suggests that the asset is closer to oversold conditions but hasn’t reached extreme levels yet.
The MACD line and MACD signal line cross each other frequently, which means that momentum is shifting between bullish and bearish. Right now, the MACD line is below the MACD signal line, indicating bearish momentum in the short term.
When it comes to Shibarium’s stats, the number of active addresses was over 2000 on August 1st, which is the highest number in over a month. For most of July, this number was in the 500-600 area. So, on-chain metrics are not promising here either.
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Based on the technical analysis and on-chain metrics, Shiba Inu appears to be struggling. While it may be premature to declare it “dead,” the current trends don’t paint an optimistic picture. The SHIB price could potentially continue to trade within the descending channel in the short term, with $0.000017 serving as a key resistance level to watch. A break above this level could signal a potential trend reversal, but until then, caution is advised.
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