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.

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.

The number of Shiba Inu whales holding at least 1 billion tokens increased between December 14 and December 19, with addresses rising from 10,861 to 10,930.

This metric is particularly crucial for market analysis as whale movements often precede major price shifts, given their substantial market influence. Their trading patterns can signal growing confidence in an asset when accumulating, or potential selling pressure when their numbers decline.

However, SHIB whale count has since reversed course, dropping to 10,875 by December 22, suggesting a shift in sentiment among these influential holders. This decline of 55 whale addresses over just three days could indicate a brewing distribution phase, where larger holders begin taking profits or reducing exposure.

Such behavior often precedes increased selling pressure in the short term, as whale distributions typically create additional supply in the market. While this doesn’t guarantee immediate price impacts on Shiba Inu, it warrants caution among traders watching for potential downside risks.

SHIB price faces a critical technical juncture with a fundamental resistance level at $0.000022, representing a key hurdle for its potential recovery.

A successful breakthrough above this threshold could open the path toward higher targets at $0.000024 and $0.000026, with the possibility of extending gains to $0.0000298 if bullish momentum strengthens.

The technical outlook, however, has been complicated by the formation of a death cross on December 18, suggesting that bearish forces might still dominate the market. This bearish technical pattern, combined with the current downtrend, raises concerns about potential further declines.

If SHIB price fails to maintain the crucial support at $0.00001985, the price could experience a deeper correction, potentially testing the lower support level at $0.0000158.

The post Shiba Inu (SHIB) Price Movement Shows Conflicting Technical Patterns appeared first on BeInCrypto.

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