Recently, the price of Shiba Inu has continuously fallen for the past three months resulting in heavy $1 Billion losses for SHIB investors. This decline has brought SHIB to its lowest level in three months. This has made Shiba Inu (SHIB) investors worried.
Shiba Inu’s (SHIB) recent decline has spooked investors. This is increasing the possibility of investors selling their holdings, which could potentially signal more losses.
Shiba Inu Sell-Off: Buying Opportunity or Trouble Sign?
The price of Shiba Inu (SHIB) has fallen significantly recently, reaching its lowest level in three months. This decline has worried SHIB investors. Investors are selling their SHIB holdings out of fear (that the price may fall further in the future). SHIB’s continued decline in the market reflects an increase in selling and a decrease in buying.
Investors bought Shiba Inu (SHIB) coins in the hope that the price would rise in the future. However, the recent massive drop in SHIB surprised investors. According to a special tool Global In/Out of the Money (GIOM) indicator, 66.75 trillion SHIB were bought at a price between $0.000021 and $0.000025.
However, Shib’s price is currently trading below the $0.000021 to $0.000025 range after the recent drop in its price. Unfortunately, investors’ hopes for a rise in SHIB’s price were dashed. Moreover, SHIB’s price has fallen below the box to the current price of $0.00002084.
SHIB RSI at 8-Month Low: What’s Next?
The technical indicator Relative Strength Index (RSI) has fueled the recent decline in SHIB price. RSI is a tool that measures how quickly the price of an asset like SHIB is moving. This converts price changes into a score from 0 to 100. An RSI above 70 indicates overbought conditions and a RSI below 30 indicates oversold conditions.
The current RSI for SHIB is below the neutral zone of 50. This indicates that the selling pressure is increasing. Due to this the price decline is likely to increase further. Shib’s current RSI reading is the lowest since October 2023 (eight months). This represents a significant decline compared to previous months.
SHIB Breaks Below Trading Range: Is a Reversal Incoming?
For the last two months, the price of SHIB has fluctuated between $0.00002835 and $0.00002093. This is a sideways movement called the consolidation zone. SHIB’s investors were expecting a breakout (price rise) above the consolidation zone.
Unfortunately, SHIB’s price fell below the consolidation zone. The current price of SHIB is showing a massive drop at $0.00002084. This is boosting the selling rate. Experts believe that Shib’s price could potentially drop to $0.00001600 or $0.00001473.
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