Over the past 24 hours, the Shiba Inu price has seen a slight decline of 1.47%, seemingly hitting a price wall as its recent momentum wanes. Coinciding with this, the meme coin has noted a decline in the utility of its ecosystem, Shibarium, purporting a bearish outlook for the asset.
Indeed, this lapse represents a step back from the growth observed in the past week. Although Shiba Inu still retains a 7.91% gain, its momentum has faltered.
This trend is mirrored in trader activity, which is down a further 4.93% today to $197.4 million, raising the question of whether this is a minor setback or the beginning of a reversal.
Shibarium Adoption Stalls: Shiba Inu Price Decline Coming?
Data from Shibariumscan shows a decline in the number of new accounts and stagnancy in the number of transactions on the chain since September 19th.
Following a Fed-rate cut-fueled boom in Shibarium adoption, it seems that this momentum has died.
However, a closer look at the Shiba Inu price chart suggests that this may just be a minor setback in a wider bullish narrative.
Most notably, today’s price action has affirmed the formation of a bullish falling wedge pattern since March, characterized by a series of lower highs and lower lows as the price consolidates towards a breakout point.
SHIB/USDT 1D chart, falling wedge pattern. Source: Binance.
As the Shiba Inu approached a test of the upper resistance of the pattern, it was rejected and and now faces a battle to maintain support at $0.000016. A daily close below this could push Shib back down to lower support at $0.0000145.
Although SHIB currently lacks the momentum needed to affirm a decisive break, this may just be indicative of a healthy cooldown period before the Shiba Inu price makes another push for a breakout of the pattern.
Notably, the Relative Strength Index (RSI) has fallen back to 60 following a brief peak in overbought territory. SHIB still retains its bullish sentiment, remaining above the neutral line.
This sentiment is echoed by the Chaikin Money Flow (CMF), which reads much the same, maintaining its position at +0.21.
Meanwhile, as the MACD line maintains a comfortable lead above the Signal line, it seems that bulls are in control, making a breakout in the near term credible.
This would establish a new target at the resistance of $0.00001930, potentially setting SHIB up for a further push to $0.00002750 in the coming weeks.
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