Shiba Inu (SHIB) price has entered a critical phase as multiple technical indicators suggest conflicting signals for its short-term trajectory. The popular meme coin has faced significant selling pressure over the past week, dropping 20% and seeing its market cap decline from $15 billion to $12.5 billion.
The latest price action shows SHIB testing crucial support levels while its RSI recovers from oversold territory, hinting at a potential trend reversal. However, the recent decline in whale accumulation and the formation of a death cross on December 18 cast shadows over immediate recovery prospects.
SHIB RSI Is Currently Recovering From Oversold
The Relative Strength Index (RSI) for SHIB has shown a significant recovery, climbing from a deeply oversold level of 16.9 just three days ago to its current reading of 44.
This swing represents a substantial shift in market momentum, as RSI measures the speed and magnitude of recent price changes on a scale of 0 to 100. When RSI falls below 30, the asset is considered oversold, while readings above 70 signal overbought conditions.
With Shiba Inu RSI currently at 44, the asset sits in a balanced position that could suggest further upside potential in the short term. Since the indicator has already bounced significantly from oversold levels but hasn’t yet approached overbought territory, there might be room for additional price appreciation.
The rapid recovery in RSI also signals that market sentiment has shifted more positively, though traders should monitor whether this momentum can be sustained.
Shiba Inu Whales Are Not Accumulating Anymore
The number of Shiba Inu whales holding at least 1 billion tokens increased between December 14 and Decem
Go to Source to See Full Article
Author: Tiago Amaral
