Shiba Inu Drops 15% as Bearish Momentum Builds

Shiba Inu, the second largest memecoin, has recently broken its ascending trendline that had supported its price since the crash on 5 August. This break could potentially lead to further price declines, possibly reaching the lows seen in Q1 2024.

The uptrend line, which had supported the price between $0.00001095 and $0.00003315, has dipped to the current level of $0.00001160. The low from Q1 2024 at $0.00000837 remains a probable downside target. The MACD line at -0.00000110, the signal line at -0.00000102, and the histogram at -0.00000008 all indicate bearish momentum, with the MACD line remaining below the signal line confirming the downtrend.

If the MACD line moves above the signal line towards +0.00000100 with the histogram crossing into the positive zone, it could indicate a potential for reversal. Conversely, a bearish case would see the MACD line drop to -0.00000200, with the histogram shifting further to -0.00000015, confirming ongoing bear pressure. If Shiba Inu falls to its Q1 2024 lows of $0.00000837, panic selling might kick in, pushing the price further down. On the contrary, a rebound from this level might push the price up to $0.00002100 to test the broken trendline, if purchasing interest improves.

Shiba Inu has also experienced a decline in active addresses per period, dropping from over 2,000 in mid-February to a historic low of 501. This decrease suggests reduced user interest, shrinking transaction activity, and falling interest across the network. When network utilization dwindles, speculation dries up, leading to reduced liquidity and exposing the coin to sell-offs. If Shiba Inu cannot generate new interest or inspire bullishness, bearish sentiment could spread, pushing the price down in the short term.

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