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Shiba Inu Price Prediction – Will This Prevent A Bullish Breakout?
The recent surge in Shiba Inu (SHIB) has raised concerns about a potential bearish trend. With over 1.78 trillion SHIB tokens being moved to exchanges, the market is bracing for an uncertain future. Will this prevent a bullish breakout? Let’s dive into the data.
Firstly, it’s essential to understand that Shiba Inu traded at $0.0000268 at press time, following a 1.9% drop in 24 hours. This decline may be attributed to the lack of buying activity which has curtailed the uptrend. A closer look at the one-day chart shows the formation of a right-angled ascending broadening wedge pattern. While this typically indicates a bullish continuation if the price breaks above the upper trendline, there are some red flags that cannot be ignored.
Volume histogram bars have shortened, indicating reduced trading activity and inadequate buying volumes to support an uptrend. This suggests that momentum is waning, and bulls may struggle to regain control. The Money Flow Index (MFI) has also slipped down to 43, signaling weak momentum in the SHIB market.
On the other hand, the Chaikin Money Flow (CMF) still shows positive buying pressure with a value of 0.15. This could potentially lead to consolidation within this channel rather than an immediate bearish reversal. However, it is crucial for buyers to step up their game and provide support in order to break above the upper trendline.
Data from CryptoQuant reveals a significant rise in SHIB crypto inflows to exchanges, with the 16th of December marking the highest level in nearly five months. The overwhelming surge in tokens being moved to exchanges has raised concerns about a potential decline for the meme coin. If buyers fail to support the price and maintain an uptrend, it could lead to a steep decline.
Key levels that traders should keep an eye on include the In/Out of the Money Around Price (IOMAP) metric, which shows that 43,080 addresses purchased SHIB at between $0.0000221 and $0.0000344. If the price approaches this range, it is likely to face resistance due to holders who are currently in a loss and may choose to sell to minimize their losses.
Furthermore, the Long/Short Ratio has been predominantly bearish for the past week, with an imbalance that favors shorts at 0.96. This suggests that most traders are expecting SHIB to continue its downward trend.
In conclusion, while the Chaikin Money Flow still indicates positive buying pressure, it’s crucial for buyers to step up their game and provide support to break above the upper trendline. The surge in inflows to exchanges has raised concerns about a potential decline, making it imperative for traders to closely monitor key levels such as IOMAP and Long/Short Ratio.
Disclaimer: The information provided is meant to be informational in nature and should not be interpreted as investment advice. Trading, buying or selling cryptocurrencies should be considered a high-risk investment and every reader is advised to do their own research before making any decisions.
Source: ambcrypto.com
