Shiba Inu Crashes Back into Bearish Territory Amid Resistance
Shiba Inu's (SHIB) latest attempt at recovery has hit a roadblock, forcing it back into bearish territory. The token encountered significant resistance near $0.00000500, failing to break through and instead reversing immediately after briefly testing that level.
The rejection is particularly notable as it occurred where several resistance factors converged, including the 50-day moving average, which is close to the $0.00000500 mark. The most recent daily candles show lower highs emerging, indicating a waning bullish momentum rather than increasing one.
From a technical perspective, the short-term trend has entered correction mode. The price has fallen below the 20-day moving average, while the 50-day average remains as resistance above. Momentum indicators also reflect a cooling mood, with the RSI moving back from overbought territory to about 53, indicating a significant weakening of buying pressure without yet reaching oversold levels.
The rejection of Shiba Inu's attempt at recovery has led to a shift in sentiment among traders. Long liquidations have predominated, wiping out around $176,000 in bullish positions compared to just under $13,000 in short liquidations. This disparity demonstrates the speed at which leveraged traders were driven out after the rejection.
The overall picture is further complicated by on-chain metrics. Exchange reserves have increased slightly along with overall exchange inflows and netflows, showing that more SHIB is becoming available on trading venues, which could increase selling pressure in the near term if holders choose to realize recent gains.