Shiba Inu price struggles in consolidation as interest in SHIB subsides
- Shiba Inu price has failed to capture investors' interest as its volume has been in decline.
- SHIB appears to be consolidating in a horizontal channel on the 4-hour chart.
- The meme-token is currently at a critically important point, which could determine its upcoming price action.
Shiba Inu price has been consolidating since May 19, as interest in SHIB has gradually been declining. The meme-token has been following the broader crypto market trend, failing to galvanize investors' enthusiasm.
Shiba Inu price at a critical turning point
Shiba Inu price appears to be consolidating in a parallel channel, currently struggling to reach the middle range of the pattern on the 4-hour chart.
The horizontal channel connects pivot highs and lows, creating trendlines that show the buying and selling pressure is somewhat equal. The prevailing direction of Shiba Inu price is sideways.
While Shiba Inu price continues to trade sideways, it has found meaningful support at the 50 four-hour moving average. However, it is essential to note that the following area of resistance emerges in a tight range above the middle band of the channel at the 100 four-hour moving average at $0.00000985.
Shiba Inu price is likely to test the first level of resistance, but it must hold above the 100 four-hour moving average at $0.00000917 before rising to the upper trendline of the parallel channel.
SHIB/USDt 4-hour chart
The low volumes seen in Shiba Inu could indicate that the hype may have subsided for the canine-themed cryptocurrency. SHIB volume has gradually decreased since May 25, coinciding with the price action.
Given the low interest in Shiba Inu reflected by its volume, SHIB price may continue to be locked in a sideways trend. On the daily chart, the meme coin has been trading on a second consecutive inside day and formed a doji candlestick, signaling a general equilibrium between buyers and sellers, as well as indicating a heightened level of indecision.
A spike in buying pressure could put the channel's upper trendline on the radar, with Shiba Inu price rallying 36% to reach $0.00001203.
Should the broader crypto market recover, bigger aspirations should not be voided for Shiba Inu price, targeting the 27.2% Fibonacci extension level at $0.00001813 in the long run.
Author
Sarah Tran
Independent Analyst
Sarah has closely followed the growth of blockchain technology and its adoption since 2016.
