Shiba Inu is an Ethereum-based token that started out as a meme before expanding into its own ecosystem with DeFi utilities and Layer-2 development options available.
Both of these aspects of the SHIB project have strong community support; however, based on the current market structure, it is clear that continued downward selling pressure is affecting SHIB instead of accumulation or new buying interest. At press time, the coin is trading at $0.000005599 with a decline of 0.69% over the past 24 hours.
SHIB Continues to See Weakness
According to the Trading View chart, Shiba Inu is continuing to consolidate beneath both daily and weekly upside targets. The loss of horizontal support at approximately $0.0000067 has created a structural change in the Shiba Inu market.
Additionally, large volume spikes resulting from red candles are indicative of a distribution phase rather than an accumulation phase.
If price does not reclaim its prior demand range between $0.0000063 and $0.0000073, then it is likely that any upward movement will be corrective within the larger channel of downward extremes.
Until that happens, there are no signs of change in momentum trend due to the existence of high-volume reversal-type candle formations erasing order flow dynamics that are currently present in this market.
Also Read: Shiba Inu (SHIB) Derivatives Split Near 50-50, Target $0.000014733
Analyst View Points to Breakdown Structure
Market analyst Ali shared his thoughts on the X, revealing that Shiba Inu is currently in a favorable position to appreciate once the support level has been broken.
However, according to the projected pathway, continued downward action could produce additional new lows before a buyer is found to step in.
Under the present market conditions, there is plenty of room for Shiba Inu to move down before it finds solidified support again, producing new liquidity below the current price range. Additionally, continued down drift demand will limit the potential upside.
The only way for Shiba Inu to reverse the momentum would be for it to reclaim previously lost horizontal support. This will validate any lending of validity to the current directional momentum trends.
Also Read: Shiba Inu (SHIB) Shows Early Signs of Momentum With a $0.01 Target In Sight