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Shiba Inu is showcasing worrying signs on the price charts as it appears to brace for a potential breakdown. After experiencing a staggering loss of over 30% of its value on the SHIB/USDT chart, the meme cryptocurrency is edging closer to what some investors fear could be the start of a prolonged correction phase.
The rapid growth phase of SHIB seems to have hit a snag, reflected in its recent price movements. The asset's support levels are currently being tested vigorously, with the previous "comfort zones" failing to provide the rebound strength seen in earlier rallies.
SHIB's trading volume has seen a notable decrease, indicating waning interest or possibly a build-up to a sell-off from investors looking to cut losses. The trading patterns suggest that bearish sentiment is taking hold, and if this continues, it could see SHIB losing a significant portion of the gains it accumulated during its meteoric rise.
Looking ahead, the immediate future for SHIB depends on whether the asset can maintain its support levels. If the price drops to 50% of its recent peak gains, this could signal the end of the rally and possibly trigger a bear market for SHIB.
On the bullish side of the spectrum, if SHIB manages to consolidate and hold its current price, this could act as a springboard for future gains, particularly if broader market sentiments improve or if there is a resurgence of interest in meme coins.
Conversely, the bearish scenario entails a break below the current support levels, which could exacerbate the selling pressure and lead to further losses. Given the speculative nature of SHIB and the power of market sentiment in driving its value, a breakdown could be imminent if the current trend persists.
Yuri Molchan
Alex Dovbnya
