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Shiba Inu (SHIB) Breakout Failed

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Fri, 17/05/2024 - 12:30
Shiba Inu (SHIB) Breakout Failed
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Shiba Inu has let us down again, as the meme coin has failed to break through the crucial 50 EMA resistance level and retraced back below it, potentially losing traction and dropping toward previous price levels. According to the current chart, SHIB is in trouble, at least for now.

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The technical analysis shows SHIB struggling to maintain its upward momentum. The price action indicates a failed attempt to surpass the 50 EMA, resulting in a pullback that has brought SHIB below this key resistance level. This setback may lead to a further decline, with SHIB potentially heading toward the $0.000024 support level. If this support fails to hold, the next target could be around $0.000022, which is another important support area.

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SHIB/USDT Chart by TradingView

On-chain data adds to the concerns. The number of large transactions, defined as those exceeding $100,000, has seen a recent spike, with 378 large transactions recorded in the last 24 hours. This increase in large transactions could be a sign of a surging activity among whales, but it also raises the possibility of significant selling pressure. The total volume of large transactions reached 8.97 trillion SHIB, nearing the seven-day high of 9.6 trillion SHIB.

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Additionally, the Network Value to Transaction (NVT) ratio has dropped by 22.70% in the last 24 hours, suggesting that the market value is declining relative to transaction volume. This decrease in the NVT ratio could imply weakening market sentiment, with investors possibly losing confidence in SHIB's short-term performance.

Shiba Inu's recent failure to break through the 50 EMA resistance level and the subsequent retracement indicate potential trouble for the meme coin. Technical analysis points to a possible decline toward key support levels, while on-chain data reveals increased large transaction activity and a falling NVT ratio, signaling potential market weakness.

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