The Shiba Inu cryptocurrency is currently navigating a critical support level amid a recent price downturn, with its value decreasing by 4% over the last 24 hours. This decline is notably milder compared to the performances of other major cryptocurrencies such as Bitcoin, which fell by 8%, Ethereum at 8.3%, and XRP dropping 10%.
As it stands, SHIB is trading at $0.00000647, resting on a key local support area. Historical analysis has identified support levels between $0.0000067 and $0.00000521, which have previously marked bottoms for the token. This indicates the significance of this support zone as market participants closely monitor SHIB“s reaction, which could dictate whether the token will decline to new lows or rebound towards higher resistance levels.
Data from CryptoQuant reveals a net outflow of 5.18 billion SHIB tokens from exchanges in the past 24 hours, highlighting a trend of accumulation rather than distribution around this support level. This suggests that investors are actively withdrawing their holdings from exchanges, potentially indicating a bullish sentiment as they prepare for long-term positions.
Furthermore, the exchange reserve for SHIB has decreased slightly from 81.5 billion tokens to 81.4 billion, reinforcing the narrative of accumulation. Market analyst SwallowAcademy shares insights suggesting that SHIB may have reached a bottom, citing a lack of compelling reasons for further declines. His analysis indicates that the daily Relative Strength Index (RSI) is at 31.45, approaching the oversold territory, which could signal a potential upward correction.
Additionally, the red bars on the Moving Average Convergence Divergence (MACD) indicator are diminishing, indicating a slowdown in bearish momentum. With a funding rate of 0.0042%, there appears to be a slightly bullish tone in the market. SwallowAcademy anticipates that buyers will take control, with an initial target set at the 200-exponential moving average, which is currently positioned at $0.00000992. For SHIB to achieve this, it will need to reclaim lower moving averages, specifically the 100-day moving average located at $0.000008290, where it faced resistance earlier this January.
However, the future trajectory remains uncertain, and price weakness could continue to affect SHIB in the near term.
