• 13 July, 2024
Market News

This Week Shiba Inu (SHIB) Might Be Under Selling Pressure; Know Why?

Shiba Inu price started the new trading week on a lower note. Global cryptomarket is under selling pressure, BTC fell 0.65%, and ETH lost 0.85%.

Shiba Inu (SHIB)  extended the losses incurred in the previous week on Monday as bulls came under pressure. The price hovers near the short-term horizontal support zone around $0.00001243. A risk aversion in the market diminished investors’ interest in the riskier assets.

As of writing, SHIB/USD is exchanging hands at $0.00001241, down 3.35% for the day. The 24-hour trading volume rose by 47.24% to $416,452,797. A rise in volume with a fall in price is a bearish sign.

In the recent development, Shiba Inu lead developers poured cold water on the rumored release of Shibarium, the long-awaited ecosystem-based Layer-2 solution based on Ethereum Virtual Machine (EVM) on Valentine’s day. This fuels the fall of the already struggling meme coin.

The daily chart shows signs of weakness

Source: Trading view

The Shiba Inu price exhibits signs of weakness on the daily time frame. The price formed a big red candlestick and breached the 21-day Exponential Moving Average (EMA). This paints a bearish picture of the meme coin

A daily close below the session’s low indicates sustained selling pressure. On moving lower, the price could test the lower trend line of the “Rising Wedge” formation, at $0.00001200. If the buyers failed to accumulate near the mentioned level, then the next probability is near the low of February 1 at $0.00001130.

On the other hand, if the price respects the horizontal support where it currently hovers, a bounce could be expected. If that happens, the first upside target would be the previous day’s high of $0.00001354.

The daily RSI (14) reads above 50.

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