As a seasoned market analyst with over a decade of experience in cryptocurrency trading, I have witnessed numerous trends and patterns unfold before my eyes. The recent occurrences in the Shiba Inu market have piqued my interest due to its unique combination of resistance and increasing open interest.
During U.S trading hours on Monday, the cryptocurrency market experienced a sudden surge in demand for selling, causing Bitcoin to drop from $700 meme cryptocurrencies were particularly affected due to their inherent volatility, extending the consolidation trend initiated last week. The Shiba Inu cryptocurrency has decreased by 0.3% today and a large wick rejection at a significant resistance level suggests a possible price decrease.
Shiba Inu Price Faces Bearish Sentiment Despite Increased Futures Interest
Over the past two weeks, the memecoin based on the Shiba Inu dog theme, SHIB, has failed to keep pace with the broader market rebound. Following its peak price of $0.00002 on July 16th, SHIB’s value dropped by 16.8%, reaching a trading price of $0.0000167. Simultaneously, the coin’s market capitalization decreased to $9.89 billion.
If the price of Shiba Inu is lower than its daily moving averages (MAs) of 20, 50, 100, and 200, this suggests that the most straightforward direction for the asset’s price movement is downward. Additionally, the Relative Strength Index (RSI) reading of 43.7% implies a bearish to neutral market sentiment based on recent price trends.
The downturn in SHIB‘s price since March 2024 can be explained by the increased resistance from the trendline of the falling wedge pattern, resulting in overhead supply pressure.
Notably, this arrangement indicates the ripeness of a downward trend and predicts a significant shift.
In July, the open interest for Shiba Inu futures significantly escalated, as evidenced by data from Coinglass. The open interest (OI) figure jumped from $27.79 million to $38.86 million, reflecting a rise of around 39.83%.
The surge in open interest indicates a rise in trader activity, potentially foreshadowing more market fluctuations or prolonged price trends.
Additionally, Shiba Inu’s secondary blockchain, Shibarium, has surpassed an impressive feat. In just under a year since its debut, it has processed over 6 million blocks. This accomplishment is a testament to the platform’s vibrant activity and increasing popularity, suggesting robust user engagement.
If the Shiba Inu cryptocurrency manages to break out above its current resistance level (wedge), this event could signify a significant shift in market trends and grant buyers the necessary foundation to instigate a sustained uptrend. Consequently, the price of Shiba Inu may surge towards an anticipated target of $0.00003.
Key Takeaway
1. Under the impact of a descending triangle formation, the Shiba Inu’s price has encountered repeated resistance since mid-July. Despite a strong resistance level so near at hand, the coin’s value refused a steep decline and instead persisted in testing the upper trendline. Given the prevailing market optimism and the growing Open interest, the SHIB price seems ready for a breakout from this triangle pattern, signaling an end to the corrective phase.
Read More
- XRP PREDICTION. XRP cryptocurrency
- ORDI PREDICTION. ORDI cryptocurrency
- SOL PREDICTION. SOL cryptocurrency
- UNI PREDICTION. UNI cryptocurrency
- USD PHP PREDICTION
- BTC PREDICTION. BTC cryptocurrency
- LUNC PREDICTION. LUNC cryptocurrency
- APE PREDICTION. APE cryptocurrency
- USD COP PREDICTION
- XAUT PREDICTION. XAUT cryptocurrency
2024-07-29 21:57