Amidst the turbulent waves of market sentiment, Shiba Inu (SHIB) — the renowned meme cryptocurrency — appears set for a significant price downturn. This apprehension isn’t isolated; it echoes throughout the cryptocurrency market, affecting major players such as Bitcoin (BTC), Ethereum (ETH), and Solana (SOL).
Shiba Inu Technical Analysis and Upcoming Levels
In a detailed analysis by CoinPedia, Shiba Inu’s outlook is decidedly bearish. The token has recently broken away from a symmetrical triangle pattern on its daily chart, signaling a shift towards a downward trend. This breakdown has cast a shadow over market optimism, suggesting possible further declines ahead.
Despite this bearish breakdown, SHIB currently finds itself supported by the 200-day Exponential Moving Average (EMA). This support level hints at a possible reversal or stabilization in the near term. However, should SHIB fall below this critical 200 EMA threshold and sustain that position with a daily candle close, a further 15% decline becomes increasingly likely. This drop could see prices plummet to as low as $0.000015 in the upcoming days. The bearish scenario for SHIB is contingent upon it maintaining a daily close below either the 200 EMA or the $0.000017 level; failure to do so may nullify the bearish outlook.
Bearish On-Chain Metrics
The pessimistic sentiment surrounding SHIB is corroborated by on-chain analytics. According to Coinglass, a prominent on-chain analytics firm, SHIB’s Long/Short ratio has plummeted to 0.869. This figure marks the lowest point since late September 2024 and underscores a strong bearish sentiment prevailing among traders. A lower ratio indicates that there are more short positions compared to long ones, suggesting that traders are expecting a price decrease.
Further compounding this bearish sentiment is the noticeable 7.67% drop in SHIB’s open interest over the past 24 hours. This decrease signals a growing liquidation of long positions as the price continues its descent. Currently, a majority of 53.5% of top traders are holding short positions, in contrast to the 47.5% maintaining long positions. This discrepancy highlights the prevalent expectation of a downward price trajectory.
Current Price Momentum
As of the latest update, SHIB is trading in the vicinity of $0.0000173, reflecting a price dip exceeding 3.8% over the preceding 24 hours. Interestingly, during this same timeframe, the trading volume for SHIB has surged by 5%. This uptick in trading activity suggests heightened engagement from both traders and investors compared to the previous day, as they react to the recent price movements and attempt to capitalize on the evolving market conditions.
In conclusion, while Shiba Inu faces a challenging moment marked by bearish patterns and metrics, the market remains dynamic. Traders should stay vigilant, keeping a close watch on key support levels and market trends to navigate the unpredictable nature of cryptocurrency investments.
