While the Shiba Inu (SHIB) is facing a significant downtrend, it has the potential to recover thanks to its new strategic partnerships.
Despite recent selling pressures, the integration with Chainlink aims to increase Shibarium’s functionality and rekindle market interest.
Chainlink,$LINK
“Our interoperability standards will enable Shibarium to grow successfully,” he said, noting that this collaboration is aimed at creating a more efficient decentralized finance (DeFi) ecosystem for Shiba Inu.
We cover the latest on the current state of Shiba Inu, the strategic partnership with Chainlink, and the future of the SHIB token.
After a tough period, Shiba Inu is facing a significant downtrend. Currently trading at $0.00002295, SHIB has lost a significant 35.61% in value over the past week. This price action has been exacerbated by market dynamics.
Recent selling pressures have caused SHIB to break above critical support levels at $0.00002737 and $0.00002289. These levels have been known to be strong support points during previous rallies, but the current downtrend has limited hopes of a recovery above these supports.
Market dynamics are also shaped by the behavior of large investors (whales). According to Coinglass data, a whale outflow of approximately $10 million was observed on December 20. However, some accumulation movements immediately afterwards brought the balance with an inflow of $7.94 million, indicating opportunism among investors. In the middle of the week, whale outflows increased from 856.14 billion SHIB on December 18 to 2.75 trillion SHIB on the 19th. Despite the inflows, outflows continued, making it difficult for prices to recover.
The strategic partnership with Chainlink paves the way for the adoption of the CCT interoperability standard, which is a critical milestone for Shiba Inu. This partnership aims to increase efficiency, especially in DeFi applications. This step could change investors’ perceptions of the SHIB ecosystem in the long run.
Analysts suggest that these developments may have limited impact in the short term, but increased functionality such as cross-chain compatibility could spark new interest among developers and investors.
In recent days, Shiba Inu’s leverage ratios have fluctuated. Open Position Weighted Leverage Ratios have fallen into negative territory, indicating a loss of bullish momentum. However, previous positive movements indicate a search for opportunities among investors.
Despite the recent bearish trends, analysts are noting oversold signals on the Relative Strength Index (RSI), which suggests that this technical indicator presents a potential buyback opportunity for some investors, while determined investors have found room to move despite the volatility.