Shiba Inu (SHIB) Holds Below Death Cross After 15% Decline — Recovery Out of Reach

Key Takeaways

• SHIB continues to trade below a death cross after the longer EMA crosses the shorter one.
• Active and new addresses have also dropped, indicating low traction towards the crypto.
• SHIB’s double-digit decline could extend toward $0.000016 unless buying pressure rises.

Shiba Inu (SHIB) is yet to stage a meaningful recovery following a 15% decline within the last month. This price action aligns with that of the wider market, with many top cryptos losing a significant portion of their values.

For SHIB, the downtrend could be linked to several factors outside of the broader outlook. With a lack of bullish momentum, SHIB’s chances of reversing its trend look slim.

Shiba Inu Continues to Face Difficult Times

On Jan. 17, SHIB’s price jumped to $0.000025. During that period, the 20-day Exponential Moving Average (EMA) crossed over the 50 EMA. This crossover, known as the golden cross is a bullish trend.

However, two days later, a bearish crossover happened as the 50 EMA (yellow) jumped above the 20 EMA (blue). This position, called a “death cross,” ensured that SHIB’s price dropped below $0.000020.

While the token has reclaimed the $0.000020 support, it still trades below both EMAs. If sustained, this indicates that the cryptocurrency’s value remains subject to a bearish trend, and a significant recovery could be off the table for now.

The 4-hour chart also shows a crucial resistance zone around $0.000021. If not breached, this resistance could hinder SHIB’s price from climbing higher.

Furthermore, CCN findings show that activity around the Shiba Inu token has dropped. For example, IntoTheBlock data shows that the number of active addresses interacting with SHIB has fallen.

It is the same with the number of new addresses. When combined, the decline in these metrics indicates low user engagement with the token.

If this trend continues, then demand for SHIB might fail to pick up. In turn, this could keep the memecoin in a tight trading range, or it might face another decline.

SHIB Price Prediction: More Losses Loom

Meanwhile, the daily SHIB/USD chart shows that the On-Balance Volume (OBV) has continued to slide. The OBV is an accumulation-distribution indicator that sums up and down volume to detect the direction the price might move.

When the OBV line rises, it indicates rising accumulation. But when it decreases, it indicates distribution.

Therefore, the current OBV reading signifies that the SHIB is yet to attract any kind of significant accumulation.

Should buying pressure remain this low, then SHIB price might drop to $0.000016. On the other hand, an increase in buying pressure could switch the trend from bearish to bullish.

If that happens, the Shiba Inu token might rally toward $0.000030. If buying pressure intensifies, that rally could be stronger, and SHIB might climb to $0.000035.