Shiba Inu (SHIB) is at a critical moment now, as some technical indicators are sending conflicting signals about its short-term trend. Over the past week, SHIB, as a popular meme coin, has faced significant selling pressure, with its price dropping by 20%, and its market cap falling from $15 billion to $12.5 billion.
From the latest price trends, SHIB is testing an important support level, and its RSI (Relative Strength Index) has rebounded from the oversold range, suggesting that a trend reversal may occur.
However, the reduction in whale accumulation, coupled with the death cross that occurred on December 18, makes the recovery outlook less clear in the short term.
Currently, SHIB's RSI is recovering from the oversold area.
Three days ago, SHIB's RSI fell to an oversold level of 16.9, and it has now risen to 44. This change reflects a significant shift in market sentiment, as the RSI is used to measure the speed and magnitude of asset price changes. When the RSI is below 30, it indicates that the asset may be oversold, while above 70 indicates overbought.
Currently, the RSI value of Shiba Inu (SHIB) is 44, which indicates it is in a relatively balanced state, possibly suggesting short-term upward potential. Although the RSI has significantly rebounded from the oversold territory, it is still far from the overbought range, so the price may continue to rise.
The rapid recovery of the RSI also reflects an improvement in market sentiment, and traders should watch to see if this momentum can continue.
However, the accumulation of Shiba Inu whales has slowed down.
From December 14 to December 19, the number of whales holding at least 1 billion tokens has slightly increased, from 10,861 addresses to 10,930, but the overall growth rate has slowed down.
This indicator is important for market analysis because whale trading behavior often leads price changes, and they have a significant influence on the market. When whales accumulate more, it typically means they have increased confidence in Shiba Inu; conversely, if whales begin to reduce their holdings, it may signal potential selling pressure in the market.
However, the number of SHIB whales reversed in the following days. As of December 22, the number of whale addresses decreased to 10,875, a reduction of 55 from three days ago. This may indicate a change in sentiment among these large holders, starting to reduce their positions or entering a profit-taking phase.
Such whale sell-offs usually increase short-term selling pressure, as their distribution creates more supply in the market. While this may not immediately affect SHIB's price, traders should remain vigilant against potential downside risks.
SHIB Price Prediction: Will SHIB Break Below the Support Level of $0.000019?
Currently, SHIB's price is facing an important technical juncture, with a key resistance level at $0.000022, which is a critical obstacle for its recovery. If SHIB successfully breaks through this price level, it may advance towards higher targets of $0.000024 and $0.000026. If the bullish momentum continues, it could even push up to $0.0000298.
However, the death cross that occurred on December 18 has complicated the technical outlook, indicating that bearish forces may still dominate the market. This bearish technical signal, combined with the current downtrend, exacerbates market concerns about the possibility of further price declines.
If SHIB fails to hold the key support level of $0.00001985, then the price may further retrace, potentially testing lower support levels of $0.0000158.
