• Shiba Inu price starts to erase its 24-hour gains after running into selling pressure at the 50-day EMA.
  • SHIB remains fundamentally weak to rally amid a persistent drop in active addresses.
  • Buyers will likely arrest Shiba Inu’s losses at $0.00000880 and pave the way for a significant recovery to $0.00001024.

Shiba Inu (SHIB) price has suddenly snapped out of a bullish mid-week stint which experts believe came from extremely oversold market conditions. The second-largest meme coin printed several green candles before tapping out at $0.00000911. Bears will likely push SHIB down to its primary support at $0.00000830 if declines are not arrested on time.

Shiba Inu price analysis as trading volume drops to $173M

Shiba Inu price is recording a 16.73% drop in trading volume across all cryptocurrency exchanges despite its mid-week rebound. According to CoinMarketCap, $173 million was traded in 24 hours. This downtrend in volume had persisted since November 10, when the $625 million was traded.

The slow trend could be a product of decreased network activity, as highlighted by the Daily Active Addresses on-chain metric from Santiment. Only 3,572 addresses have interacted with SHIB on the protocol compared to a 30-day peak of 14,363, recorded on November 13.

Shiba Inu Daily Active Addresses

Shiba Inu Daily Active Addresses

The FTX crisis continues to keep investors and traders away from crypto markets. A consistent southbound trend in the number of daily addresses actively transacting on the blockchain provides a sneak peek into the level of speculation among investors. Therefore, Shiba Inu price could only recover if retail investors make a strong comeback.

Bears snuff out SHIB’s bullish spark

Shiba Inu price did not manage to break and hold above the resistance provided by the 50-day Exponential Moving Average (EMA) (in red) at $0.00000902, possibly due to early profit booking by investors who are too anxious to wait, thanks to the FTX contagion.

SHIB trades at $0.00000892 while looking forward to resting on relatively higher support. The falling trend line is the first support candidate at $0.00000880, but declines could stretch to the primary support at $0.00000830.

SHIB/USD four-hour chart

SHIB/USD four-hour chart

At the moment Shiba Inu price lacks enough momentum to change the outlook from bearish to bullish, hence, buyers should pay attention to a buy signal from the Moving Average Convergence Divergence (MACD) indicator.

Buy orders can be triggered above the 50-day EMA using the MACD’s movement above the mean line (0.00) into the positive territory as a confirmation signal. Profit booking can potentially occur at the 100-day EMA (in blue) around $0.00000951 and the 200-day EMA (in purple), holding the ground at $0.00001024.

 

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