Shiba Inu Falls as Bears Take Control
Shiba Inu faces strong bearish pressure as declining network activity and rising sell-offs signal further price weakness ahead.
Shiba Inu (SHIB) has faced significant downward pressure recently, with sellers dominating the market and pushing prices lower. The decline reflects a shift in sentiment, with bulls struggling to regain control while bearish momentum remains strong. SHIB’s price has dropped sharply, aligning with the broader crypto market’s downturn, and indicators suggest this trend may continue unless buying pressure returns.
One key factor driving this drop is the increase in selling activity compared to buying. On-chain data shows a rise in bearish addresses actively offloading SHIB tokens, creating downward pressure on the price. At the same time, network activity has slowed, with fewer unique wallets interacting with the token. Active addresses, which measure the number of wallets participating in transactions, have seen a notable decline. This drop signals reduced user engagement and lower overall demand, reinforcing the bearish outlook for SHIB in the near term.
Technical indicators also point to weakness. The Relative Strength Index (RSI), which measures momentum based on price movements, suggests that selling pressure dominates. When RSI remains below the neutral zone, it indicates a lack of buying momentum. Without a reversal in these technical signals, SHIB’s value may continue its descent.
Market sentiment surrounding SHIB reflects caution, with investors showing hesitancy in re-entering positions. If bears maintain control, SHIB could slide further, testing lower support levels. However, if bulls manage to regain momentum, there’s potential for a rebound. Increased buying activity or a shift in broader market conditions could spark a recovery rally, lifting SHIB towards higher resistance levels.
The coming days will be critical for SHIB’s price action. Investors are closely watching network activity and trading volume for signs of renewed interest. If engagement and transaction numbers pick up, it could provide the support needed for a price recovery. For now, the token remains under pressure, with bears holding the upper hand.
