U.Today - recently showed a troubling pattern in its price performance. Despite experiencing several pumps that suggest a growing position on the market, each surge in price has been followed by a rapid decline on the , eroding gains and casting doubts on the token's stability and growth potential.
Analyzing the provided chart, SHIB's price action paints a picture of volatility and uncertainty. The token has repeatedly struggled to maintain its upward momentum, with each rally sharply retracting and plummeting below the $0.00001 level. This recurring pattern is disconcerting as it indicates a lack of investor conviction, where profit-taking trumps the anticipation of a significant, sustained price increase.
SHIB/USDT chart by From a technical standpoint, the local resistance for appears to be formed near the $0.000012 mark. This level has acted as a barrier to price progression, with SHIB facing rejection upon each attempt to breach it. Conversely, the local support level is found around $0.000009, a threshold where buying interest has historically emerged to provide a floor for the price.
The concern arises from the observation that after each pump, not only retracts but also seems to set progressively lower highs, a bearish indicator in technical analysis. This pattern suggests that with each spike, fewer investors are willing to bet on a further climb, opting instead to secure short-term gains and exit their positions.
Furthermore, the relative strength index is trending downward, another signal that the momentum behind SHIB may be waning. The declining volume accompanying the price drops post-pump reinforces the view that investor enthusiasm is cooling off.
The sentiment surrounding meme coins like SHIB right now is far from euphoric as the majority of retail investors anticipate a Bitcoin ETF (TSX:EBIT) approval and lean toward more "serious" assets that will benefit from the systemic growth of the industry.