Shiba Inu Price Turns Bearish, Risks 26% Drop to Address Market Imbalance

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As a seasoned financial analyst with extensive experience in the crypto market, I have closely monitored the recent developments surrounding Shiba Inu (SHIB). The ongoing price decline, despite growing global adoption and community efforts to burn tokens, is a trend that has piqued my interest.

The price of Shiba Inu has been decreasing despite growing interest from major corporations and businesses around the world. A recent proposal by the Shiba Inu community on Change.org urged Binance to destroy a portion of traded SHIB tokens using trading fees, with the intention of boosting the token’s long-term value.

As an analyst, I’ve observed a 5.6% decrease in SHIB‘s price during European business hours on Thursday, which now trades at $0.00001624. Surprisingly, the development team behind SHIB has remained active despite this price downturn. In fact, the number of transactions on their network reached an all-time high today according to Shibarium Scan.

Shiba Inu Price On-chain Metrics Signal Rising Bear Power

Based on Coinalyze’s data, there has been a 11.49% decrease in Shiba Inu (SHIB) open interest over the past 24 hours, implying that investors are withdrawing funds from the cryptocurrency. Additionally, the number of traders holding long positions on SHIB is 1.89 times greater than those with short positions, and this ratio is declining, suggesting a bearish sentiment among investors towards the asset.

Shiba Inu Price Turns Bearish, Risks 26% Drop to Address Market Imbalance

In simpler terms, the present average fee for opening SHIB positions on margin exchanges is a negative 0.0037%. This implies that traders are prepared to pay extra to wager on price decreases. According to Coinalyze’s data, the anticipated funding rate stands at a more significant negative 0.0152%. Therefore, the market seems to anticipate a more pronounced decline in SHIB prices.

SHIB Price Analysis: Has to Fill This Gap Before Bulls Return

As an analyst, I’ve observed that the Shiba Inu price has been following a downward trend, marked by successively lower peaks and troughs. Lately, this asset formed a descending triangle pattern on its chart. After breaking below the triangle’s support line, it retested the same level to validate the breakout.

As a researcher examining the market data, I observe that the current price lies in a region with minimal backing from buyers or sellers, approximately around $0.0000115. Recent candle formations suggest selling pressure, aligning with the prevailing bearish trend.

Shiba Inu Price Turns Bearish, Risks 26% Drop to Address Market Imbalance

The current Shiba Inu price trend is indicated by its forecast, which reveals that the asset is currently trading beneath both its 50-day and 200-day exponential moving averages (EMAs). This finding underscores the prevailing downward trend. Additionally, it’s noteworthy that the 50 EMA has recently dropped below the 200 EMA, which is referred to as a “death cross.” Given these developments, it’s anticipated that Shiba Inu’s price action will likely continue to decline in the near future.

As a researcher studying cryptocurrency price movements, I’ve identified several key resistance levels that could potentially impact the price action. These include the levels at $0.00002362, $0.00002998, and $0.00003363. Additionally, the prices at $0.00001361 and $0.00000996 might offer additional support for any price declines that may fall below the fair value gap (FVG).

Despite a 25% surge in hourly trading activity according to CoinGecko data, the volume remains comparatively low, implying muted demand at present prices.

With a RSI reading of 40.94 and a drop below its 14-day Simple Moving Average (SMA), the Relative Strength Index suggests further potential for price decreases, reflecting growing bearishness. The Chaikin Money Flow indicator stands at -0.02 and is trending downwards, suggesting a gradual buildup in selling pressure.

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2024-07-25 12:14