Market’s Interest In Shiba Inu Is Declining
Shiba Inu continues to move lower as the popularity of the cryptocurrency slips while other coins move higher in the market cap rankings.
According to CoinMarketCap, Shiba Inu has moved from the 11th place to the 13th place in the list of top coins by market capitalization as it was surpassed by Avalanche and Crypto.com coins.
Recent whale transactions provided only temporary support to Shiba Inu. WhaleAlert has recently reported a purchase of over 850 billion Shiba Inu coins, but this move also failed to provide material support to Shiba Inu.
It looks that the interest in the coin is fading which is natural since Shiba Inu has been moving lower since late October, when it reached all-time high levels near $0.000090. Shiba Inu has already lost more than half of its value in less than one month, so traders’ interest in the coin is declining.
Crypto markets are very dependent on momentum. According to CoinMarketCap, almost 15,000 cryptocurrencies exist in the world. While most cryptocurrencies are not available on major exchanges, traders still have plenty of options to choose from so they tend to move from one coin to another depending on the near-term trends.
Not surprisingly, recent data from Google suggests that search interest in Shiba Inu coin is declining. Trends change quickly in the crypto world, and only the leading cryptocurrencies, Bitcoin and Ethereum, managed to stay at the top of traders’ wishlists. The interest in other cryptocurrencies is often volatile, and they quickly move back and forth in rankings.
At this point, it is obvious that Shiba Inu needs additional upside catalysts to break the current downside trend. Whale transactions failed to provide enough support to the cryptocurrency, and it needs to get back on the “hype train” to attract more traders.
Technical Analysis
Shiba Inu has recently made an attempt to settle above the resistance at the 50 EMA at $0.004245 but failed to develop sufficient upside momentum and moved back below the $0.000040 level. Currently, Shiba Inu is trying to settle below this level.
RSI remains in the moderate territory as Shiba Inu moves lower without huge sell-offs, so there is plenty of room to gain additional downside momentum in case the right catalysts emerge.
In case Shiba Inu manages to settle below the $0.000040 level, it will move towards the next support level which is located at the recent lows near $0.000036.
A move below $0.000036 will push Shiba Inu towards the support at $0.000033, although it can also get some support near the $0.000035 level. If Shiba Inu declines below $0.000033, it will move towards the support at $0.000032.
On the upside, a move above $0.000040 will push Shiba Inu towards the resistance at the 50 EMA. In case Shiba Inu manages to settle above the 50 EMA, it will head towards the next resistance level at $0.00004450. A successful test of this level will open the way to the test of the resistance at the 20 EMA near $0.000047.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
