Technical Analysis of SHIB: Why Does It Have Lower Highs and Could It Be a Slow Rug Pull? Pt1

The recent behavior of Shiba Inu ($SHIB) in the market has raised concerns among investors, especially due to a sustained trend of lower highs. This pattern, accompanied by other technical and fundamental signals, raises the possibility that the asset may face a gloomy future, even being considered by some as a "slow rug pull." Below, we analyze the reasons behind this dynamic and the potential risk associated.

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1. Lower highs: a concerning technical signal

In technical analysis, a sequence of lower highs is a classic signal of a bearish trend. In the case of SHIB, this pattern indicates that buyers are losing strength in each rally, and sellers are taking control at increasingly lower price levels. The reasons behind this behavior include:

Loss of momentum: As the initial excitement surrounding SHIB, based on hype and speculation, fades, speculative investors tend to exit the asset. This results in lower demand during rallies, preventing the price from reaching previous highs.

Stronger resistances: The accumulation of sell orders at key levels (resistances) reflects investors' distrust that the asset can maintain value in the long term. Each rally encounters more aggressive selling pressure, reinforcing the downward trend.

Decreasing volume: An analysis of SHIB's volume during its rallies shows a steady decline. This indicates a lack of genuine interest from major investors ("smart money") to sustain the price.

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