Shib price almost reached yearly lows during the most recent market crash. However, Bitcoin’s recovery saw the entire market swing upwards. Despite the green markets, the latest analysis reveals there may be an extended downturn for Shib and other crypto assets in the coming days. Shiba Inu broke down from a falling wedge, a rare occurrence that signals extreme bearish pressure. Despite the slim recovery, Shiba Inu price action reveals signs of weakness and a potential 16% drop from the current price.

Shib Price Facing Rejection

The current trend for Shiba Inu price is downward. It has been consistently declining within a falling channel pattern, indicating strong bearish momentum. However, the price broke down from the falling wedge on August 3, a rare occurrence as falling wedges typically indicate a potential bullish reversal.

Shiba Inu’s price action has found support at around $0.000012, followed by a stronger support level at $0.00001. On the other hand, immediate resistance exists at the 50-day ($0.00001425) and 200-day ($0.00001628) exponential moving averages (EMAs). 

If SHIB price fails to re-enter the falling wedge, the asset may drop 18% to the previous 6-month low of $0.00001082.

The Relative Strength Index (RSI) is at 47.61, approaching the neutral zone, suggesting that the asset is neither overbought nor oversold. The Chaikin Money Flow (CMF) is at 0.03, indicating a slightly positive money flow, which could be an early sign of buying interest.

A steady decline of volume during the recent minor upward move indicates some bearish volume-price divergence, which supports the continuation of the bearish trend unless there is a significant breakout.

SHIB Price Chart

Shiba Inu price prediction shows that if it surpasses $0.00001344, it may break back into the falling wedge, turning the bias bullish once more. A break above the 50 EMA may set it up for a bullish breakout above the falling wedge toward $0.00001625 and $0.000018.

On-Chain Risk Analysis For $7.24 Billion Tokens

SHIB open interest dropped 4.54% over the last 24 hours, signaling money is flowing out of the Shiba Inu market. This suggests that the recent minor uptrend may be coming to an end and, subsequently, the continuation of the bear trend.

Consequently, over 26,000 Shiba Inu holders are facing jeopardy as their 14.29T ($190 million) tokens may soon enter unrealized losses. These will join over 542T ($7.24 billion) tokens that have been underwater for the past almost three weeks, according to data from IntoTheBlock.

If buy pressure and volume increase, it may overturn the current bearish thesis and propel Shib price higher.

The post SHIB Price Signals 16% Decline as $7.24 Billion In Tokens Wade Underwater appeared first on CoinGape.

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Filed under: News - @ August 8, 2024 8:24 am