Over the past few months, Shiba Inu (SHIB) has been performing as one of the quieter cryptocurrencies among major tokens. With a mere 0.09% gain over the past three months, SHIB has essentially flatlined compared to other large-cap cryptocurrencies that have shown upward momentum.
Shiba Inu’s Current Performance
As of now, SHIB is trading near $0.0000122, reflecting a 1.4% drop in just the past 24 hours and a significant 7.2% decrease compared to the previous year. This stagnant trend can be largely attributed to on-chain signals, which suggest that while the rangebound structure may finally break, the sellers currently hold the upper hand.
Understanding the Supply Metric
The Percent Supply in Profit metric for SHIB sits at 24.3%, which is midway between its historical highs and lows. This metric historically indicates that rallies tend to fade when it approaches 37%, while sustainable price bottoms occur closer to 19%. Currently, SHIB’s mid-range metric explains its recent neutral performance. Enough token holders are sitting on gains to trigger intermittent profit-taking, yet there aren’t enough losses across the board to fuel significant capitulation and fresh buying interest. This balance has confined SHIB to a narrow trading range.
Bearish Divergence: A Warning Signal
The SHIB 4-hour chart reveals a bearish divergence. A higher high in SHIB’s price coincided with a lower high on the RSI (Relative Strength Index). RSI measures market momentum by weighing buying vs. selling pressure, and this pattern signals fading buyer strength amidst increased profit-taking. Simply put, as SHIB prices rose, they encountered resistance from sellers, suggesting potential downside risk.
Adding to the bearish narrative is the Exchange Withdrawing Addresses metric. This indicator, which gauges the number of unique wallet addresses withdrawing SHIB from exchanges, is currently at a one-year low, with just 452 addresses involved. Low participation rates in withdrawals highlight weak demand, reinforcing the bearish sentiment on SHIB.
Key Resistance and Support Levels
Immediate resistance is expected at $0.0000123, followed by a stronger barrier at $0.0000135. For bullish sentiment to return, SHIB would need to break above $0.0000141. Conversely, a clean break below $0.0000119 could lead to a downward move toward $0.0000116 or lower, ending its stagnant phase but steering the price in a direction unfavorable to bulls.
Conclusion
While Shiba Inu remains a popular meme coin, its recent technical signals and low withdrawal activity suggest increased vulnerability to bearish movements. Potential investors should closely watch the key resistance and support levels mentioned above and consider the broader market conditions before making any decisions.
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