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Disclaimer: The information presented does not constitute financial, investment, trading or any other type of advice and is solely the opinion of the author.
- Shiba Inu prices have fallen significantly over the past two weeks.
- On a weekly level, bulls showed dominance on the HTF chart.
Shiba Inu (SHIB) has seen a bearish shift in technical indicators on the daily chart. Meme Coin fell 21% from its local high of $0.00000965 on November 21 to $0.0000076. However, despite the big decline, a higher rally may be on the horizon.
SHIB’s performance over the past month has been relatively poor compared to Dogecoin (DOGE). Interest in the Sybarium ecosystem also appears to have declined.
It broke weekly lows and produced a near-perfect retest.
Source: SHIB/USDT on TradingView
The 1-day chart above showed a bearish structure. The higher low set at $0.0000078 was recently broken on November 9th and SHIB fell to $0.0000076. However, despite this technical bearish bias, SHIB is very likely to post gains close to 30% soon.
This is because the $0.0000077 level, shown in green, was the previous lowest high on the weekly chart. It was discontinued in mid-October and has been tested again for support over the past few days. So, this was a strong signal of bullish intent on higher time frames.
Daily indicators disagreed. RSI fell below the neutral zone of 50, and Chaikin Money Flow (CMF) also entered the neutral zone. On-Balance Volume (OBV) also barely maintained support levels.
Sentiment and network activity showed that the bulls could gain some traction.
Source: Santiment
The weighted sentiment indicator saw a few big gains in November but remained mostly negative. This is a sign of a bearish trend in social media engagement.
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Active address metrics spiked on November 22nd, coinciding with a significant spike in spending age.
This means that the decline was accompanied by a surge in on-chain activity that could indicate a selling wave. It remains to be seen whether further price declines will continue thereafter.