Shiba Inu (SHIB) has been making headlines once again, but this time for all the wrong reasons. The popular meme token has been under sustained selling pressure, leading to a significant crack in a critical support level. 

Despite the recent launch of Shibarium, a blockchain platform aimed at enhancing the SHIB ecosystem, the bearish sentiment seems to have a firm grip on the token’s price chart, raising concerns about the long-term outlook.

The crack in SHIB’s armor became evident as it breached the crucial $0.00000807 support level, resulting in a 7.3% decline in its price over the past seven days. Currently, SHIB is trading at $0.00000764, as reported by CoinGecko, with a modest 1.5% gain in the last 24 hours. However, these numbers only tell part of the story.

Shiba Inu’s Bearish Indicators Abound

A deeper dive into the technical indicators as revealed in a recent report reveals a grim picture for SHIB. The Chaikin Money Flow (CMF) has seen a substantial decline, resting at the zero mark as of press time.

This signifies a lack of buying pressure and strong capital outflows. Moreover, the Relative Strength Index (RSI) remains in a downtrend, hovering just above the oversold zone, highlighting the absence of demand for SHIB.

SHIB market cap currently at $4.5 billion on the daily chart: TradingView.com

Intriguingly, the report also points out that the levels at which bears could potentially profit might serve as a price reversal zone for bulls, drawing parallels with price action observed in early June. However, the 24-hour liquidation data from Coinglass suggests a muted possibility of a bullish uptick in the near future.

Shiba Inu: The Indian Connection

Despite the challenging times for SHIB, it continues to make waves on WazirX, one of India’s leading cryptocurrency exchanges. According to a recent tweet from the exchange, SHIB held its ground among the top three most traded digital currencies in August, alongside giants like Bitcoin and XRP. 

Top five traded coins on WazirX in August:

🚀 $USDT
🚀 $BTC
🚀 $SHIB
🚀 $XRP
🚀 $ETH pic.twitter.com/Xes1MlAl95

— WazirX: India Ka Bitcoin Exchange (@WazirXIndia) September 5, 2023

According to a report, this trend mirrors the performance observed in June and July, where these tokens showcased resilience, often trading in tandem with Bitcoin, the market’s heavyweight.

The lackluster performance of SHIB in the face of the Shibarium launch and the bearish technical indicators raise concerns about its long-term prospects.

Meanwhile, a price reversal cannot be ruled out, and SHIB’s latest dip could be just a bullish opportunity in disguise.

(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

Featured image from Getty Images