Shiba Inu (SHIB) Price: Bearish Signals Flash
Shiba Inu (SHIB) has shown minimal price movement recently, lagging behind other major cryptocurrencies. Over the past three months, SHIB has gained a mere 0.09%, essentially remaining flat. Currently, the Shiba Inu price is trading around $0.0000122, a 1.4% decrease in the last 24 hours and nearly 7.2% lower year-to-date.
On-chain indicators suggest this rangebound behavior may soon break, potentially favoring sellers.
Profit-Taking and Price Stagnation
The Percent Supply in Profit for SHIB is currently at 24.3%, hovering between historical highs and lows. Historically, rallies tend to stall around 37%, while bottoms form near 19%. This mid-range position explains SHIB's recent lack of momentum.
The current balance indicates enough holders are taking profits intermittently, but not enough are at a loss to trigger significant capitulation or new buying.
This equilibrium has confined SHIB within a tight trading range.
Bearish Divergence Emerges
A bearish divergence is now visible on the 4-hour chart. The Shiba Inu price reached a higher high, while the Relative Strength Index (RSI) recorded a lower high. This suggests that while buyers pushed the price up, their momentum weakened as sellers entered the market.
Essentially, rallies are facing increased selling pressure, which often precedes a downward break.
Decline in Withdrawal Addresses Signals Fading Interest
An increase in withdrawals from exchanges typically indicates investors are moving tokens into long-term storage. The Exchange Withdrawing Addresses metric provides a more accurate picture of broader participation by tracking unique addresses making withdrawals.
This number has dropped to 452, reaching a one-year low.
The shrinking number of addresses withdrawing coins from exchanges indicates a lack of new buying interest. Despite SHIB's price being near cycle lows, traders don't appear eager to accumulate the token. Unless this trend reverses, weak demand will exacerbate the bearish pressure.
Potential Price Levels to Watch
The combination of waning buying interest and a bearish divergence makes SHIB vulnerable on the price chart. Immediate resistance is at $0.0000123, with a stronger resistance barrier at $0.0000135. Only a breakout above $0.0000141 would negate the bearish outlook and potentially signal an uptrend.
Conversely, a clear break below $0.0000119 could push the SHIB price down toward $0.0000116 or even lower, potentially ending its rangebound phase in a manner unfavorable to bulls.