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Shiba Inu price continues to fall, extending its decline as it drops nearly 19.60% in the past month. The decline comes amid global uncertainties and technical challenges, raising concerns about the cryptocurrency’s short-term outlook.
As the market faces escalating geopolitical tensions, Shiba Inu seems particularly vulnerable due to its highly speculative nature.
Key Developments Impacting Shiba Inu Price
AS of press time, SHIB is trading at $0.00001175, up by 1.55% over the past day. The ongoing Iran-Israel war and growing uncertainty around U.S. President Donald Trump’s tariffs are weighing on risk sentiment.
These factors have created a “risk-off” environment in the markets. As a result, speculative cryptocurrencies like Shiba Inu are facing increased selling pressure.
On-chain data further supports the bearish outlook. Santiment’s Realized Profit/Loss (NPL) metric indicates that Shiba Inu holders are realizing losses. The metric dropped from -346,000 to -211.2 million between Sunday and Monday, the largest drop since March 2024. This decline signals a loss of investor confidence, contributing to the downward pressure on Shiba Inu price.
Investor Behavior Contributes to Decline in Shiba Inu Price
Investor sentiment is clearly weakening. Santiment’s Supply Distribution metric shows that large-wallet holders, also known as “whales,” are reducing their holdings. The number of wallet addresses holding between 100,000 and 1 million SHIB tokens, as well as those holding between 10 million and 100 million, has decreased. This drop in whale activity is reinforcing the belief that Shiba Inu price could continue to decline.
Technical Indicators Suggest Further Decline
Shiba Inu’s technical outlook also remains bleak. The cryptocurrency faced rejection at the 50-day Exponential Moving Average (EMA) on June 13, which acted as a key resistance level.
This rejection was compounded by a descending trendline, formed by connecting multiple highs since mid-May. As a result, Shiba Inu price dropped nearly 14% over the following days.
Shiba Inu found brief support around the $0.000011 level on June 14. However, the rebound was short-lived, and the cryptocurrency continues to face downward pressure. If Shiba Inu closes below this support level, the next target could be the April 9 low at $0.000010.
Bearish Indicators on Shiba Inu Price Charts
The Relative Strength Index (RSI) on the daily chart reads 34. This indicates oversold conditions and further confirms the strong bearish momentum. The Moving Average Convergence Divergence (MACD) indicator, a popular momentum tool, also shows a bearish crossover.
With rising red histogram bars, the MACD suggests that bearish momentum remains intact, supporting the downward trend.
| Month | Minimum Price | Average Price | Maximum Price | Potential ROI |
|---|---|---|---|---|
| June | $0.0000116 | $0.0000122 | $0.0000128 |
-24.7%
|
| July | $0.0000143 | $0.0000148 | $0.0000153 |
-10%
|
| August | $0.0000132 | $0.0000138 | $0.0000143 |
-15.9%
|
| September | $0.0000136 | $0.0000140 | $0.0000143 |
-15.9%
|
| October | $0.0000140 | $0.0000145 | $0.0000150 |
-11.8%
|
| November | $0.0000149 | $0.0000151 | $0.0000153 |
-10%
|
| December | $0.0000148 | $0.0000150 | $0.0000151 |
-11.2%
|
On the weekly chart, Shiba Inu price continues to show red candlesticks. This marks the sixth consecutive week of decline. The RSI on the weekly chart is at 39, indicating that the cryptocurrency is still under significant bearish pressure. Furthermore, the MACD on the weekly chart is close to flipping into a bearish crossover, which could further confirm the downward trend.
Next Support Levels for Shiba Inu
If Shiba Inu price continues its decline, the next key support level to watch is $0.000011. If it fails to hold this support, Shiba Inu could test even lower levels. In the worst-case scenario, Shiba Inu price could retest its April low of $0.000010.
However, there is a potential for a rebound. If Shiba Inu finds support at these levels, the price could recover toward the next weekly resistance at $0.000013. But for now, the technical indicators point to further downside.
Global Events Impact Shiba Inu
Shiba Inu price is also being impacted by broader market events. The Iran-Israel conflict and global uncertainty over U.S. tariffs are creating a negative environment for risk assets. Cryptocurrencies, particularly meme coins like Shiba Inu, tend to be more volatile during periods of geopolitical tension.
As a highly speculative asset, Shiba Inu price is especially sensitive to changes in investor sentiment. The ongoing geopolitical unrest, combined with weak on-chain data, has contributed to the increased selling pressure.
Conclusion
Shiba Inu price is struggling under a mix of market factors. Geopolitical tensions, investor sentiment, and technical analysis all suggest that the cryptocurrency could continue to face declines in the short term. Despite potential support levels, the overall trend remains bearish.
If Shiba Inu fails to hold key support levels, it may face further losses. On the other hand, a recovery is possible if the market stabilizes. For now, Shiba Inu holders must remain cautious as the price faces an uncertain road ahead.
Frequently Asked Questions (FAQ)
1: Why is Shiba Inu price falling?
Shiba Inu price is falling due to global geopolitical tensions and weakening investor sentiment, leading to increased selling activity.
2: What are the key technical indicators for Shiba Inu?
Shiba Inu’s RSI is at 34, indicating oversold conditions, while the MACD shows bearish momentum, suggesting a further decline.
3: What is the next support level for Shiba Inu?
The next support level for Shiba Inu is around $0.000011. If it falls below this level, it could drop to $0.000010.
4: Can Shiba Inu Price recover?
A recovery is possible if Shiba Inu finds support at current levels. The next resistance level to watch is $0.000013.
Appendix Glossary of Key Terms
Shiba Inu (SHIB): A decentralized meme coin and cryptocurrency, often considered a DOGE killer.
Support Level: A price level where an asset tends to find buying interest, preventing further decline.
Exponential Moving Average (EMA): A technical indicator that gives more weight to recent prices to identify trends.
Relative Strength Index (RSI): A momentum oscillator that measures the speed and change of price movements to determine overbought or oversold conditions.
Moving Average Convergence Divergence (MACD): A trend-following momentum indicator used to spot changes in the strength, direction, momentum, and duration of a trend.
Bearish Momentum: A market condition where prices are expected to decline or are already declining.
Whale: A term used for large holders of a particular cryptocurrency, whose trades can significantly impact market prices.
References
FXStreet – fxstreet.com
CryptoeNews – cryptonews.com
