The Shiba Inu (SHIB) price experienced a sharp downturn after its initial May rally, falling by 17% from its recent peak. Though Shibarium’s TVL increase initially boosted SHIB to $0.00001757, gains quickly faded. Despite a record burn spike and positive sentiment surrounding the token, the price continues to struggle under technical bearish indicators and declining on-chain activity. Key factors driving this price decline include:
1. **Technical Weakness:** The price remains below key moving averages (EMAs), confirming a weakening trend.
2. **Weak Momentum:** RSI and CMF remain weak or neutral, suggesting consolidation or further downside.
3. **On-Chain Data**: Whale activity has decreased significantly, while active addresses have dropped by over 68% since December. These data points indicate a lack of sustained interest from both whales and retail investors.
While there is potential for SHIB to rebound, the current technical setup remains bearish. The price currently sits near $0.00001450, acting as a crucial support level. This will be tested as the price battles against resistance levels.
**Looking Ahead:** To avoid further declines and potentially see a reversal, SHIB needs to reclaim the $0.00001600 resistance, indicating sustained buying interest. A sustained push above this level might signal a potential rally towards the $0.00001589-$0.00001700 zone. However, if SHIB breaks below $0.00001375, further downside could be expected, potentially targeting the crucial support levels of $0.00001200 and even $0.00001029.
**Trading Sentiment**: A decisive trend shift may not occur before early June unless fueled by strong catalysts.