The Shiba Inu price has seen a decline despite an increase in trading volume, presenting a potential buying opportunity before a possible rally. Interest in Shiba Inu remains high, with trading volume rising by 25%. However, despite increased global adoption from leading brands and startups, the price continues to fall.
Current Market Sentiment and Price Movements
On Thursday, the price of SHIB dropped 6.1% during American trading hours, reaching $0.00001626. This decline comes even as Shib developers continue to innovate, with transaction numbers hitting an all-time high, according to Shibarium Scan. The Shiba Inu community has also been active, recently petitioning Binance via Change.org to burn SHIB tokens using a portion of the trading fees to support the token's long-term success.
On-Chain Metrics Indicate Bearish Sentiment
Data from Coinalyze indicates a 13.07% decrease in SHIB open interest (OI) over the past 24 hours, suggesting investors are pulling back. Additionally, the ratio of traders long on SHIB versus those shorting it is at 1.89 and trending downward, reflecting a bearish outlook.
The current aggregated funding rate for SHIB is -0.0037%, showing traders are willing to pay a premium to bet on declining prices. This expectation of further price drops is reinforced by a predicted funding rate of -0.0152.
Price Analysis and Key Levels
Shiba Inu is in a downtrend, characterized by lower highs and lower lows. The asset recently broke out of a descending triangle and is retesting the bottom support to confirm the breakout. There is minimal support between the current price and the market imbalance zone around $0.0000115. Recent candlestick patterns have shown selling pressure, confirming the bearish sentiment.
The SHIB price is trending below the 50-day and 200-day exponential moving averages (EMA), reinforcing the downward trend. The 50 EMA has crossed below the 200 EMA, forming a death cross, which is a strong bearish signal. The price action is expected to trend lower in the coming days.
Key Resistance and Support Levels
Resistance Levels: $0.00002362, $0.00002998, and $0.00003363
Support Levels: $0.00001361 and $0.00000996
Even though CoinGecko data shows a 25% increase in 24-hour trading volume, it remains relatively low, indicating a lack of significant buying interest at current price levels.
Technical Indicators
Relative Strength Index (RSI): Currently at 40.94, the RSI has crossed below its 14-day simple moving average (SMA), signaling increasing bearish momentum.
Chaikin Money Flow (CMF): The CMF is at -0.02 and trending downward, indicating small but growing selling pressure.
In summary, while the Shiba Inu price continues to dip, increased trading volume and on-chain activity suggest that the asset remains of interest to traders. However, the prevailing bearish sentiment and technical indicators point to potential further declines before any substantial recovery.
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“