The price of Shiba Inu (SHIB) has declined 10% over the past seven days, following its December 7 peak when it reached its highest levels since January 2024. The recent pullback highlights weakening momentum, with key indicators such as RSI and DMI reflecting a bearish change. in market sentiment.
While SHIB’s downtrend currently lacks significant strength, continued selling pressure could push the price towards key support levels. However, a recovery above critical resistance could signal a possible reversal and renewed bullish momentum in the near term.
SHIB RSI has been neutral since December 20
The Shiba Inu Relative Strength Index (RSI) is currently at 40.4, up from around 57 just two days ago. This significant drop indicates a loss of buying momentum, with the market leaning towards bearish sentiment.
The move towards lower levels of the RSI suggests that sellers have gained control, pushing the price closer to oversold territory, although not quite there yet.
SHIB RSI. Source: TradingView
The RSI is a momentum indicator that measures the speed and magnitude of price movements on a scale of 0 to 100. Values above 70 indicate overbought conditions, which often precede a correction, while values below to 30 suggest oversold conditions, potentially leading to a rebound.
With SHIB RSI at 40.4, it remains in a bearish-neutral range, indicating some selling pressure without reaching oversold levels yet. In the short term, this could mean that SHIB price may continue to decline or stabilize near current levels unless strong buying interest resurfaces to change the momentum.
Shiba Inu’s Current Downtrend Is Not That Strong
SHIB’s Directional Movement Index (DMI) chart shows its Average Directional Index (ADX) at 19.13, down from the highest levels just three days ago. This drop in ADX indicates that the strength of the current Shiba Inu downtrend is weakening, although the trend remains intact.
The D+ (positive directional indicator) has fallen to 16.6 from 23 two days ago, indicating lower buying momentum, while the D- (negative directional indicator) has risen to 23.7 from 18.6, indicating reflecting an increase in selling pressure. This combination suggests that sellers currently dominate the market and that buying interest continues to fade.
SHIB DMI. Source: TradingView
ADX is a trend strength indicator that measures the intensity of a trend on a scale from 0 to 100, without indicating its direction. Values below 20 indicate weak trends, while values above 25 represent strong trends. With SHIB ADX at 19.13, the downtrend lacks significant strength, even though sellers remain in control as indicated by the higher D-.
In the short term, this could mean that SHIB price could come under continued downward pressure, although the weakening trend suggests the possibility of stabilization or consolidation if buying momentum begins to recover.
SHIB Price Prediction: Will it return to $0.000015 soon?
If SHIB’s current bearish trend persists, the price could soon test the support level at $0.0000198.
If the downtrend regains strength, SHIB price may continue to decline, with potential resistance levels around $0.000018 and $0.0000158 to be tested next.
SHIB price analysis. Source: TradingView
On the contrary, if SHIB price manages to regain its uptrend and overcome the $0.000022 resistance, the token could aim for higher levels of $0.000024 and even $0.000026.
These levels highlight the importance of the $0.000022 resistance and $0.0000198 support as key thresholds in determining whether SHIB can reverse its bearish trajectory and regain a more positive outlook in the near term.
