Shiba Inu (SHIB) might be facing its own demise as analysts predict a continuation of its week-long price decline. The meme coin, known for its association with the adorable Shiba Inu dog breed, has lost nearly 14% of its value in the past seven days, raising concerns about its future.
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Bearish Signals Fill The Air
Technical indicators often used to gauge market sentiment are flashing red for SHIB. The Relative Strength Index (RSI) and Money Flow Index (MFI) currently sit at 38 and 35, respectively. While these values suggest the asset might be oversold and ripe for a rebound, other indicators paint a bleaker picture.
The Elder Ray Index, which measures the strength of buyers versus sellers, has been firmly in negative territory since June last week, indicating a clear dominance of bears in the market.
The current technical outlook for SHIB is bearish. The lack of buying pressure combined with strong selling momentum suggests the price could drop further in the short term. Analysts expect to see SHIB retreating to the $0.000020 mark.
Is The Howl Of The Crowd Fading?
NewsBTC’s analysis also highlights a potential decline in investor interest for the self-proclaimed “Dogecoin Killer”. This waning enthusiasm could be a significant contributing factor to the price drop.
The meme coin’s initial surge to prominence relied heavily on social media hype and community-driven movements. However, with the overall cryptocurrency market experiencing a correction, and meme coins facing increased scrutiny, the “Shiba Army” might be losing some of its steam.
While the immediate future appears bleak for SHIB, a complete collapse isn’t entirely out of the question. Market sentiment could trigger a price rebound. If bulls regain control and investor confidence returns,
SHIB could potentially climb back up to the $0.000024 mark. However, analysts warn that this scenario hinges heavily on unforeseen market forces and a renewed wave of community support.
SHIB Price Forecast
Meanwhile, with a projected value of $0.00007 by July 12, 2024, the present analysis of Shiba Inu (SHIB) points to a large potential price growth of 226%. But even with this bullish price forecast, the technical indications show that the market is still pessimistic.
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The Fear & Greed Index, which pegs high levels of greed at 72, supports this feeling. Shiba Inu’s price volatility over the last 30 days has been moderate at 4.50%. Only 40% of the days have seen increases, suggesting that there hasn’t been much bullish momentum.
Featured image from Reddit, chart from TradingView