Shiba Inu (SHIB) Price Analysis: Anticipating Further Consolidation or Breakout?
The Shiba Inu (SHIB) price has experienced a significant decline, with a 60% decrease in average transaction size within a short period of four days. This decline may indicate a waning interest from investors in Shiba Inu, potentially signaling a shift in the previously bullish market sentiment.
The overbought zone of the SHIB RSI suggests that further price corrections could be on the horizon. Additionally, the consolidation pattern formed by the EMA lines indicates that the price of SHIB may stabilize at its current levels, indicating a potentially challenging period ahead in terms of maintaining its upward momentum.
Analyzing the average transaction size of SHIB over the past month reveals an intriguing pattern. From February 21 to March 11, there was a significant surge from $10,139 to $49,816, marking a 391% increase in just three weeks. This increase in transaction size correlated with a rise in SHIB’s price from $0.000009 to $0.000033, demonstrating a clear connection between these metrics.
However, the average transaction size subsequently experienced a substantial decline. From $49,816 on March 11, it dropped to $9,352 on March 24, representing an 81.23% decrease. In the last four days alone, the average transaction size for SHIB decreased by 60%. Given the correlation between these metrics in recent months, the significant gap between the drop in average transaction size and the price correction suggests that SHIB prices may face further declines in the coming days.
Another indicator pointing towards a potential correction is the high RSI of 81 for SHIB. Typically, when the RSI surpasses 70, it suggests that the asset might be due for a correction as the market seeks equilibrium between buyers and sellers. The RSI for SHIB has cooled down slightly from 88 on March 11 to 83 by March 25, but it is still undeniably in overbought territory, indicating a potentially bearish signal.
In terms of technical analysis, SHIB’s Exponential Moving Averages (EMAs) suggest that there may be a possible decline in price if the current trend persists. However, the proximity of all EMA lines to the current price indicates a period of consolidation, where the price of SHIB could break out in either direction depending on future market developments and overall sentiment.
EMAs are valuable tools for identifying trends and potential price reversals, as they react more swiftly to market changes compared to Simple Moving Averages (SMAs). A downward crossover of short-term EMA falling below the long-term EMA indicates a bearish outlook, while the opposite is true for a bullish signal.
Considering these factors, it is likely that the SHIB price will remain within the range of $0.000023 to $0.000028. However, if a strong downtrend occurs and the $0.000023 support is not sufficient, there could be a retest of the old support at $0.000009. On the other hand, a new bull run could test $0.000045 again.
Overall, the future direction of SHIB’s price remains uncertain, with the potential for further consolidation or a breakout depending on market conditions and investor sentiment.