- SHIB shows signs of consolidation, but overall trend remains bearish.
- Seller fatigue emerges as SHIB compresses into a narrow range.
- Key resistance levels will determine SHIB’s next move in market.
Shiba Inu (SHIB) has been under a distinct downtrend over the past few weeks, consistently trading below its key moving averages. Despite this, a slight recovery has emerged since late November, hinting at potential upward momentum.
If the price continues to print higher lows, it could indicate a meaningful shift in market sentiment. However, the 50 EMA, 100 EMA, and particularly the 200 EMA, all remain above SHIB and are sloping downward, signaling that the overall trend is still bearish.
This dynamic suggests that any upside movements may only be short-term corrections, unless SHIB manages to break through key resistance levels.
Current Market Behavior Shows Seller Fatigue Rather Than Panic
According to recent market observations, SHIB has shifted from aggressive selling to a more controlled and consolidating phase. The price is now compressing into a narrow range, forming a shallow ascending structure.
This indicates that the market may be experiencing seller fatigue, as opposed to panic exits. The drop in trading volume supports this view, with volume significantly lower than during the initial breakdown phase. This could suggest that SHIB is no longer seeing widespread panic selling, which is often a sign of market bottoming out.
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Moreover, the Relative Strength Index (RSI) is remaining neutral, staying away from oversold territory. This is another indication that SHIB might be gearing up for a relief rally, especially if broader market sentiment stabilizes.
While no immediate moonshot is expected, the focus is on a potential push toward the 50 EMA, which will serve as a critical resistance level for the cryptocurrency.
A Decision Looms for SHIB: Consolidation or Breakdown?
SHIB’s price action is currently at a crossroads. The next few days will be crucial as the coin either continues to consolidate and break upwards from its current tightening structure, or it falls back into another phase of decline.
This phase is important for positioning within the market, with investors waiting for more clarity on the direction. A failure to hold the consolidation base could send SHIB lower, possibly signaling the end of its short-term recovery. However, if the price manages to break above key resistance levels, particularly the 50 EMA, a corrective bounce may occur, providing hope for short-term upside.
In the end, the market’s next move will depend on the strength SHIB can show in the coming weeks. Until then, the asset remains in a delicate phase of consolidation, with survival mode taking precedence over any revival expectations. Only time will tell if SHIB can turn its current base into a more sustainable uptrend or if it will slip further into decline.
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