The Shiba Inu (SHIB) currency has had little fluctuation in price over the last few weeks, marking a period of stasis. The token is becoming less popular on social media, which might add to the market's lack of vigor.
The SHIB community's diminished excitement and the quiet price swings suggest traders are holding off on entering the market until the next significant event occurs.
Shiba Inu Chain Data Indicates a Pessimistic Attitude
On-chain activity for Shiba Inu (SHIB) has weakened, indicating a pessimistic outlook. A decline in open interest followed by a lull suggests that traders are not eager to take up new bets.
The decline shows that traders are hesitant to take on long or short token holdings.
The financing rate has been dropping concurrently. This declining trend suggests that traders are less confident in SHIB's future price movement, even though the funding rate is still positive.
When the funding rate declines, it usually indicates that traders anticipate lower prices in the near future, but the market has not yet reached the stage where longs are outpacing shorts.
Whales, or larger investors, have also decreased their holdings, indicating a lack of faith in the prospective price of the coin. The decrease in whale holdings implies that not even large holders have high hopes for SHIB's near future.
However, even while smaller retail investors have been making gains, their influence has not been sufficient to offset the ongoing unfavorable mood in the market as a whole.
The confluence of negative financing rates, stagnating open interest, and diminishing whale holdings underscores the prevailing pessimistic outlook for SHIB. The token may continue to see negative pressure unless these patterns exhibit indications of reversal, thus traders should exercise caution when thinking about taking up new holdings.
SHIB Price Cannot Break Through EMA Resistance
The fact that the SHIB USD pair was unable to break above its 20-day EMA (red wave) trendline indicates that bears were putting up a strong fight to hold the dynamic barrier. On September 12, the token had a 1.6% decline, underscoring the weakening of the SHIB market.
The price of the Shiba Inu coin may rise to the resistance around $0.0000143 before aiming for the resistance at $0.0000156 if the memecoin breaks above the EMA trendline.
On the other hand, SHIB price would probably challenge the support levels around $0.0000128 and $0.000012 if there was a downturn from here.
The SHIB coin's RSI stayed neutral at 46.33, emphasizing the absence of positive momentum in the price movement of the token.
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