By Shelly Melancon (Switzerland)
Various technical indicators show that the SHIB price is bearish today. In addition, the bears have gathered more momentum to have greater control over the SHIB market. SHIB’s price plummeted from $0.00002221 to $0.00002108 between January 29 and 30.
SHIB/USD Price Action On The 4-Hour Timeframe
The price has further declined from $0.00002108 to $0.00002057 within the last 24 hours (a decline of about 6.50%). More importantly, it is not showing any possible sign of reversal. However, a resurgence from the bulls cannot be ruled out.
Following the bearish trend, the SHIB price trend has entered a squeeze. Thus, the resistance and support are closer to each other, with the price now less susceptible to any extreme volatility. As of this writing, the $0.00002218 level represents SHIB’s strongest resistance, and it corresponds with the Bollinger band’s upper limit.
On the other hand, the $0.00002038 level represents SHIB’s most vital support and corresponds to the band’s lower limit. Another confirmation of this bearishness is that its price line has crossed underneath the SMA curve.
The nature of this price downtrend doesn’t indicate that a reversal is likely. Instead, there will likely be a further downtrend below the next crucial support.
SHIB/USD 4-hour timeframe. Source: TradingView
SHIB’s RSI score of 38 further proves the bearish trend. But the price’s downward movement is linear and indicates stability and a balance between buy-sell activities. The 24-hour chart confirms that SHIB remains bearish. But it further suggests that it is more susceptible to huge volatility (a contrast to what other technical indicators showed).
SHIB Price Action On The 24-Hour Timeframe
In this timeframe, SHIB’s next crucial resistance is the Bollinger band’s upper limit, corresponding to the $0.00003325 level. However, its next critical support is the band’s lower limit which corresponds to the $0.00001661 level. The SHIB price line also cut beneath the SMA curve (like in the previous timeframes), and a break below the crucial support might lead to a breakout and a possible reversal.   Â
SHIB/USD 24-hour timeframe. Source: TradingView
Here, the RSI score for SHIB is 30, indicating that the asset is currently undervalued. A further decrease in this score would suggest that this asset is devalued. Hence, there would be more selling pressure than buying pressure, and the RSI score would decline further.
SHIB bulls would need to intensify their efforts to rescue control from the bears. However, a breakout from the next crucial support might happen, which would lead to a reversal.
Driving Up SHIB Price
The latest Etherscan data showed that nearly 323m SHIB tokens had been burned in the last seven days and 60m within the past 24 hours. The SHIB army burned these tokens by sending them to a dead wallet in 60 transactions, a move they hope will shoot up the price of the meme token.
Developments such as SHIBerse and SHIBarium are expected to launch this year and increase SHIB’s value. However, the SHIB community also wants to play an additional role in moving the price even higher.
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