Shiba Inu (SHIB) Price Approaches Profit Zone: Will Momentum Sustain?

The price of Shiba Inu is currently on the verge of yielding high returns for its investors. The target is not too far off, but meme coin is losing the necessary energy to make it happen.

But if things go sideways, Shiba Inu's chances of reaching the target and making a profit are bleak.

The price of the Shiba Inu is likely to decrease

The Shiba Inu's price has been able to record a significant increase, but this increase has been reduced in the last three days. Since March 5, the Relative Strength Index (RSI) and the Moving Average Consolidation Divergence (MACD) have been witnessing a bearish trend.

The Relative Strength Index (RSI) measures the magnitude of recent price changes to assess overbought or oversold conditions in the market. A high RSI indicates overbought conditions, which may indicate a price correction, while a low RSI indicates oversold conditions, which may indicate a buying opportunity.

Moving Average Convergence Divergence (MACD) is a momentum indicator that shows the relationship between two moving averages in the price of a security. It includes the MACD line and the signal line. Crossings between these lines indicate changes in trend momentum, with the MACD line crossing above the signal line and bearish signals occurring when it crosses below.

The former still remains above the neutral line, which is slightly optimistic, while the latter is already posting bearish red candles.

In addition, Shiba Inu investors are looking to lock in their gains by reducing their holdings. Surplus booking is generally defined as the movement of tokens to exchange addresses, and can also be noted in the spike in Active Deposits.

This spike suggests that SHIB holders are looking to book profits by putting their supply into exchange wallets. Therefore, if a sale were to take place, the result would be a very depressed Shiba Innu price, resulting in a decline.

SHIB Price Prediction: This can be avoided though.

The Shiba Inu price is currently trading at $0.00003513, a 271% gain in the past two weeks. If the above factors affect the price action, it is likely to drop to $0.00003084. However, Mem Coin is currently close to breaching the resistance level of 0.00003599.

This hurdle is significant because about 46.32 trillion SHIB tokens worth $1.6 billion were bought between $0.00002800 and $0.00003599. Once this level turns to support, the entire supply becomes profitable.

This can reinvigorate volatility among investors, preventing them from taking “early” profits. Therefore, SHIB's value provides another opportunity to earn more. It might even break $0.00004000, which is not worth the thought text.