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Dog-themed meme coin Shiba Inu (SHIB) has seen over 120 billion SHIB moved to different exchanges within the last 48 hours as selling pressure increases. This has resulted in further price slides amid a poor outlook for the meme coin. Despite this development, Shiba Inu has not slipped into the oversold zone.
Shiba Inu's critical support levels come into focus
As per CoinMarketCap data, the Relative Strength Index (RSI) of Shiba Inu on the one-hour time frame is 39.92. It is slightly lower on the 24-hour and weekly chart time frames, which stand at 36.68 and 35.51, respectively.
Although these figures are significantly low, they remain above the 30 mark, which is the oversold threshold.
It implies that Shiba Inu still has slightly more room to fall before slipping into oversold territory. Notably, if an asset slips into oversold territory, it could trigger price reversals if it hits rock bottom.
Still, technical signals indicate that there is an imminent buildup for Shiba Inu that could spark an upward consolidation.
If this lingers, it could result in a massive breakout for the dog-themed meme coin.
However, on the flip side, if the bearish momentum continues and fails to reclaim the $0.00000879 pivot point, it could trigger further declines. Such a price slip could see SHIB threaten the $0.0000075 support.
As of press time, Shiba Inu is changing hands at $0.000008617, which reflects a 2.32% decline in the last 24 hours.
The trading volume has also witnessed a significant 22.85% drawdown to $134.5 million. This poor outlook reflects the broader crypto market's risk-off sentiment.
SHIB reversal imminent?
It is worth noting that the free-fall Shiba Inu has been experiencing is coming to an end. As U.Today reported, the asset displayed significant features like flattened volatility and sharp liquidation. The SHIB market is currently moving into the middle stages.
Shiba Inu’s metrics suggest that the meme coin could witness trend reversals as the worst appears to be over. Market observers say SHIB has followed similar patterns in the past and signals that the meme coin is set to shift into a stable zone.
For Shiba Inu, it appears the asset will self-correct its price. This is because other factors, such as the deflationary burn mechanism, have little effect.
Over the last 24 hours, there has been no burn activity, and it will not trigger the changes that SHIB needs.
Investors will have to patiently wait for a significant shift in price to start its upward climb to reach zero.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team