The Shiba Inu price has declined in the past two straight days even as Bitcoin eyes its all-time high. The SHIB coin is trading at $0.000025, which is about 18% above its highest level this week. This drop has brought its total market capitalisation to more than $10 billion, making it the 20th biggest cryptocurrency in the world.
Rebound not driven by fundamentals
The Shiba Inu price staged a major recovery in the past few weeks helped ny enthusiasts who reacted to a tweet by Elon Musk. The rally helped push the coin from a low of $0.0000063 to a high of $0.000036. As a result, its market capitalisation rose and pushed the coin to become one of the biggest platforms in the world.
For a few days, Shiba Inu was the most talked-about cryptocurrency in the world. It was trending in Twitter and StockTwits while its searches on Google rose. At the same time, the volume of the coin traded every day rebounded sharply.
Still, the main challenge for the rally was that the rebound was not supported by any fundamentals. Instead, it was driven by hype, which can be relatively risky. For example, when Shiba Inu was launched in May, its price jumped to an all-time high as investors bought the so-called Dogecoin killer. However, shortly afterwards, its price crashed as its enthusiasm faded.
Shiba Inu price prediction
The three-hour chart shows that the SHIB price bullish momentum has faded recently. The coin has dropped for the past two consecutive days and is currently trading at the lowest level since October 11. It has also moved below the 25-period and 50-period moving averages. A closer look also shows that the MACD has made a major bearish divergence pattern while the price has moved below the Ichimoku cloud.
Therefore, the SHIB price will likely keep falling as bears target the 50% Fibonacci retracement level at $0.000022, which is about 15% below the current level. On the flip side, a move above the key resistance at $0.000030 will invalidate the bearish thesis.