- SHIB stays down
- Key factor for price
Although Shiba Inu is no longer in free fall, it would be premature to declare this to be the bottom. Currently, the chart displays stabilization rather than strength. In comparison to the October-November leg, the price has flattened following a protracted downtrend, volatility has decreased and selling pressure has obviously subsided.
SHIB stays down
In technical terms, SHIB remains below all significant moving averages. The long-term EMA overhead is still very bearish, indicating that the prevailing trend has not reversed. At first, any recovery from this point would be remedial rather than a reversal of the trend. That is an important distinction. Bounces inside downtrends are common and frequently mistaken for the bottom.
SHIB/USDT Chart by TradingViewThe RSI is in the low to mid-40s, indicating a lack of significant momentum but not a severe oversold situation. The market is weary but not completely flushed, which is consistent with price behavior. You would anticipate either a violent rejection or a sharp volume spike if this were a true capitulation zone. Neither has yet to occur.
Key factor for price
In the future, volume will be the most important factor. It is not very loud right now. That encourages stabilization, but it also leaves room for another leg to fall. SHIB would require fresh selling pressure, either brought on by a sudden liquidity event or more general market weakness, in order to break significantly lower. In the absence of that, the price is more likely to cut sideways and gradually establish a base.
Although it is contingent, the possibility of another crash is still present. SHIB will not be exempt if Bitcoin or the larger market collapses. Because there is not much demand in this situation, support might quickly give way. The path of least resistance, however, is consolidation followed by a relief bounce when there is no external stress.
One of two things is probably going to happen next: either a final downside sweep intended to cause late stop-losses prior to a recovery, or a slow grind higher toward the closest moving averages as short sellers unwind. Zero is not an option because this market does not function mechanically or structurally that way. The true question is not “Can SHIB recover?” but rather whether a final flush is necessary to finish it cleanly.
Source: https://u.today/shiba-inu-shib-no-price-crash-is-stabilization-in
