Shiba Inu is just about to lose another zero in the price as it broke through several important support levels in the last few weeks.
A continuous evaluation of a persisting bearish trend is indicated on the short and long terms using technical cues such as the 50, 100, and 200-day moving averages.
This led to the trading volume decline and the sub-40 RSI indicator, which indicated that sell pressure remained strong and investor confidence was low throughout the retail market.
Shiba Inu is approaching a key psychological and technical level, trading at $0.00001079 at the time of writing. Following the inability to maintain some of its new support levels, the token is now experiencing a test of the next important support at the level of $0.00001000. Breaking below this might see the token tack another zero to its price, and it would wipe off the profits of previous months.
The weakness underlying the trend has been persistent on a long-term basis, as all the major moving averages have a downward slope. The sustained bearish activity is indicated in the 50-day, 100-day, and 200-day moving averages. Such resistance has hindered all recovery efforts to date, and the absence of upside momentum has affirmed the continued selling.
The Falling volume is an indicator of low demand.
The number of shares traded has been decreasing week by week, and this is a sign of diminishing interest among investors. This decrease in purchasing power has been met by a Relative Strength Index (RSI) front displaying a score of less than 40, which supports the new current bearish trend. The decreasing RSI tends to reflect increased selling strength and weak market confidence.
The value of Shiba Inu greatly depends on retail enthusiasm, which has also fallen recently in light of overall market declines. SHIB has not been able to gain momentum without the powerful support of a new trigger. More than a few efforts at a rebound in recent times have been short-lived and have been met with severe pushback.
The Outlook in the Short Run is Vulnerable
SHIB lost an important support area at the value of 0.00001234, where it used to stabilize. This violation has brought the token to additional losses and the possibility of it going under the sub-$0.00001000 even higher. Further refusal to move averages contributes to the difficulties of the future. There is no indication that the market will reverse, which means that volatility may remain high.
The mood among SHIB investors is weak. Unless LUNC experiences buyer aggression or changes in the general market situation, the token will encounter more significant losses. The psychological effect of dropping below the present stage can also harm confidence more and trigger more sell-offs.
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