Shiba Inu (SHIB): First Green Candle in 7 Days, Are Things Changing?
2025-01-29
Category: None

Shiba Inu has finally printed a green candle following a vicious seven-day losing streak, raising questions about whether the downtrend is abating. With strong selling pressure, SHIB has been struggling, dropping below important support levels and hitting its lowest price since October 2024. It is currently trading at $0.00001853. 
SHIB has been in freefall for the last seven days, printing red candles on a regular basis as sellers controlled the market. At $0.00002078, a level that had previously served as strong support, the price fell below the crucial 200 EMA. Due to additional selling pressure brought on by this breach, SHIB fell toward the $0.00001700 range. 
Poor trading volume and a general lack of momentum have also been significant contributors to SHIB's tumble. The Relative Strength Index (RSI) indicated that SHIB was significantly undervalued when it fell into oversold territory. Buyers, however, had not been particularly interested in stepping in until today. The first green candle to form in more than a week may be a sign that sellers are becoming weaker. However, confirming a complete reversal is premature. SHIBUSDT Chart by TradingView">
SHIB would have to recover $0.00001990, which is in line with earlier support in order to resume its bullish trend. The next significant resistance levels are $0.00002078 and $0.00002200 if SHIB keeps rising. A significant bullish signal and the beginning of a larger recovery would be provided by regaining these levels. 
However, if SHIB is unable to sustain this rebound, $0.00001700 is the next target on the downside, and in the worst case, prices could drop as low as $0.00001500. Although it is encouraging, this lone green candle does not yet support a complete trend change.
To stop another selling wave, bulls will need to demonstrate consistent buying pressure. Failure to do so could result in another decline, but a move above $0.00001990 would suggest that SHIB is prepared to fight back.