Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
After weeks of consistent declines, Shiba Inu is now exhibiting the first indications of slowing down. Although the price has been steadily declining toward the $0.000008 zone, the decline’s momentum is obviously waning this time.
Shiba Inu sell-off
Sharp liquidation, a flattening of volatility and a period of stabilization prior to any significant attempt at recovery have been the hallmarks of every significant sell-off in SHIB’s history. The market is currently moving into the middle stage.
According to the chart, SHIB has already attained levels where it has previously traded comfortably. This indicates that the price is not in uncharted panic territory, which is significant. SHIB has consistently maintained this area as a baseline before forming more significant trend reversals, and the market has seen these valuations numerous times.
Decline slows down
It is more of a controlled drift that is now losing pressure than a collapse in the direction of $0.0000087. The same is confirmed by volume. The high volume of sales that was observed earlier in the month has vanished. Buyers are quietly absorbing liquidity, while sellers are no longer aggressively pushing the market.
It is frequently the first indication that the market is prepared to move from capitulation into stabilization when a downtrend starts to weaken without new lows being aggressively printed. The slowdown is also shown by the RSI. Without moving further into oversold territory, it has been lingering in the mid-30s.
This exact RSI behavior was present in SHIB’s prior cycles just prior to the market ceasing to bleed and beginning to consolidate sideways. Although consolidation does not seem exciting, it typically serves as the starting point for any subsequent momentum-driven rally for meme assets like SHIB.
All of this does not ensure an instant reversal, but the conditions are now ripe for one. SHIB only needs to cease creating new lows in order to confirm recovery, it does not need to suddenly explode upward. This is perhaps the ideal time for the asset to stabilize and start laying the groundwork for future gains because momentum is waning and the price is within a well-known historical range.
In the coming weeks, SHIB could easily turn this slowdown into a planned recovery phase if the overall market avoids another shockwave.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team