Despite the ongoing price consolidation in Shiba Inu (SHIB), the popular second-largest crypto meme coin by market cap has received significant attention from crypto giants, as reported by on-chain analytics firm IntoTheBlock. Today, December 18, 2024, InTheBlok revealed that SHIB’s large transaction volume increased by 238.58% in the past 24 hours.
Shiba Inu (SHIB) bearish outlook
This notable volume appeared as SHIB began experiencing selling pressure and the formation of a bearish price action pattern near a resistance level. However, the meme coin’s bearish outlook emerged at a time when major cryptocurrencies such as Bitcoin (BTC) and XRP witnessed notable upward rallies.
SHIB technical analysis and upcoming level
According to CoinPedia’s technical analysis, SHIB has formed a bearish inverse cup and price action pattern on the daily time frame and is currently on the verge of a collapse. However, this is a resistance level where the meme coin has formed this price action pattern.
Based on the historical price momentum, if SHIB breaks the bearish pattern and closes a daily candle below the $0.0000258 level, there is a strong possibility that it could decline by 20% to reach the $0.0000206 level in the coming days.
However, it has been more than a month since SHIB has experienced a significant price increase or decrease; it appears that there is ongoing price consolidation. But the recent price action signals potential downside momentum, selling pressure and a price decline in the coming days.
On the upside, SHIB’s Relative Strength Index (RSI) currently stands at 55, indicating it is still below overbought territory. This technical indicator suggests that the asset has plenty of room to rise in the coming days.
Current price momentum
Currently trading around $0.000026, SHIB has experienced a 2.65% decline in the last 24 hours. During the same period, trading volume fell 17%, indicating lower participation from traders and investors in the face of bearish outlook.