Current market conditions appear to be deteriorating for Shiba Inu. The meme token was expected to support the recovery from the past month. Unfortunately, it has instead become more vulnerable to price drops.

Shiba Inu to make a bow

The bearish bullishness has been getting stronger on the price charts lately. And SHIB is starting to show negative signs in terms of price action.

First, the Moving Average Convergence Divergence (MACD) is about to perform a bearish crossover. The receding green bars, at press time, highlighted the growing bearishness.

If this bearish crossover on MACD materializes. it would be the first time in two months that SHIB has seen any clear bearish signals.

Shiba Inu price promotion | Source: TradingView – AMBCrypto

Second, the altcoin failed to turn its critical short-term resistance level into support this week before falling 9%.

Testing the 23.6% Fibonacci level as a resistance, the altcoin traded below the $0.00001300 level.

While it still had the support of the 50-day Simple Moving Average, it was not enough to counter the broader bearish signals.

However, Shiba Inu’s constant efforts to develop its ecosystem have kept its investors on a leash. Recently, the blockchain brought on board visualization studio The Third Floor (TTF), known for working on Marvel and Star Wars films, to design and construct its Metaverse.

Interestingly, investors have not yet reacted to these developments as they are sticking to their regular behavioral patterns.

Transaction volumes on the chain averaged $70 million, with some peaks worth $200 million to $400 million.

Shiba Inu Investors | Source: Intotheblock – AMBCrypto

The network continues to attract new investors day in and day out. So added over 70,000 users in just three months, with none of the older investors stepping out.

Shiba Inu transaction volume | Source: Intotheblock – AMBCrypto

This is despite Shiba Inu losing its spot as the fourteenth largest cryptocurrency in the world to Avalanche when its market cap dropped to $6.2 billion.



This post Shiba Inu traders need to know this before squaring their position

was published first on https://ambcrypto.com/shiba-inu-traders-must-know-this-before-squaring-off-their-position/

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