CoinJie reported:
The outlook for Shiba Inu appears highly pessimistic based on price trends and technical indicators. Fibonacci levels suggest that SHIB prices could decline to lows last seen in late February.
The price of Shiba Inu [SHIB] has rebounded 38% from recent lows over the past two days but has failed to reach the previous support level at $0.0000178, which is now acting as resistance. This could potentially lead to further price declines.
A recent report by AMBCrypto noted that SHIB is undervalued in the short term but has also seen a decline in network growth. Following a price rebound, the question remains whether the bull market can sustain further price increases.
Will the price of Shiba Inu drop another 30%-45% in the near future?
The price action on the daily chart strongly suggests bearish sentiment. Following a breach of the range, SHIB continues to form a series of lower highs and lows. The RSI remains below the neutral 50 level, reinforcing the bearish outlook.
DMI indicates that since June 14th, both -DI and ADX have been above 20, indicating a strong downward trend in progress. This situation remains unchanged.
The 78.6% Fibonacci retracement level has been breached and flipped to support. Hence, there is a possibility that the meme coin could move downwards to the 100% level or even further south.
On-chain metrics show a lack of bullish momentum for SHIB.
The average coin age started declining in the last week of May, indicating distribution trends have yet to begin an upward trajectory. This suggests stable selling across the network with minimal accumulation.
Read Shiba Inu’s [SHIB] Price Forecast 2024-25
As prices rebound, dormant circulation spiked on July 6th, potentially signaling early warnings of additional selling pressure. Daily active addresses remain stable compared to last month.
Disclaimer: The information provided does not constitute financial, investment, trading, or any other type of advice, and is solely the opinion of the author.
