- Shiba Inu (SHIB) has plummeted by 19.91% in the past 24 hours, reaching a four-month low.
- The memecoin’s price dropped to $0.0000116 before slightly recovering to $0.0000141.
- Weekly and monthly losses stand at 20.21% and 42.19%, respectively.
- Panic selling and bearish sentiment have gripped SHIB holders, leading to significant liquidations.
- Futures Open Interest (OI) for SHIB has dropped by 41.64%, reflecting declining investor confidence.
- Indicators like RSI, CMF, and Funding Rates suggest continued bearish dominance.
- SHIB could drop further to $0.000012 or lower if current trends persist, though a recovery to $0.000016 is possible.
Shiba Inu’s Price Plunge: A Closer Look at the Decline
Over the past 24 hours, Shiba Inu (SHIB) has faced a sharp downturn, losing nearly 20% of its value and hitting a four-month low of $0.0000116. This decline comes amid a broader market crash that has left no corner of the cryptocurrency space untouched, including memecoins like SHIB. Although the token has managed a slight recovery to $0.0000141 at the time of writing, the damage remains significant, with weekly and monthly losses of 20.21% and 42.19%, respectively.
The sudden drop has sparked widespread panic among SHIB holders, many of whom have resorted to selling their assets to minimize losses. This wave of panic selling has been a key driver of the token’s decline, as traders scramble to exit their positions in a volatile market. The question now is: what’s fueling this bearish sentiment, and how deep could the decline go?
Investor Behavior and Market Sentiment
The recent sell-off in Shiba Inu can be attributed to a combination of factors, chief among them being a lack of confidence among investors. Data shows that many traders have been closing their positions, either to cut their losses or to lock in profits before the market deteriorates further. This trend is particularly evident in the Futures market, where Open Interest (OI) for SHIB has dropped by a staggering 41.64%, falling to $165.51 million. Such a sharp decline in OI is a clear indicator of waning investor interest and growing uncertainty about the token’s future.
Adding to the bearish sentiment is the significant liquidation of long positions. Over $7.2 million worth of long positions have been liquidated in the past day alone, with some traders being forced out of their positions due to margin calls. This wave of liquidations has only intensified the selling pressure, creating a self-reinforcing cycle of decline.
Technical Indicators Signal Bearish Control
A closer look at SHIB’s technical indicators reveals a market firmly in the grip of sellers. The Relative Strength Index (RSI), a key measure of market momentum, has dropped from 39 to an oversold level of 24 in just three days. This sharp decline underscores the dominance of sellers and suggests that the token is currently undervalued, though it may not be enough to trigger a reversal in the short term.
Similarly, the Chaikin Money Flow (CMF), which measures the flow of capital into and out of an asset, has turned negative, dropping to -0.11. This indicates that outflows are outweighing inflows, further confirming the bearish sentiment. Meanwhile, trading volume has surged, but this increase is primarily driven by sell orders, highlighting the extent of the panic among SHIB holders.
Funding rates across major exchanges have also turned negative, with the Aggregated Funding Rate dropping to -0.0207. This suggests that short sellers are paying a premium to maintain their positions, reflecting a strong belief that the token’s price will continue to fall. The Predicted Aggregated Funding Rate, currently at -0.0202, reinforces this outlook, indicating that bearish sentiment is likely to persist in the near term.
What Lies Ahead for Shiba Inu?
The road ahead for Shiba Inu remains uncertain, but the current market conditions suggest that further declines are possible. If the selling pressure continues, SHIB could drop to $0.000012, a key support level. Should this level fail to hold, the token may fall even further, potentially reaching $0.00001088. Such a scenario would mark a significant setback for the memecoin, erasing much of the progress it has made in recent months.
However, a recovery is not entirely out of the question. If market conditions stabilize and buying interest returns, SHIB could reclaim the $0.000016 level and potentially aim for $0.00001780. For this to happen, the token would need to see a reversal in key indicators like RSI and CMF, as well as a shift in market sentiment from bearish to bullish.
Conclusion
Shiba Inu’s recent decline highlights the volatility and unpredictability of the cryptocurrency market, particularly for memecoins. The token’s 19.91% drop over the past 24 hours, coupled with significant weekly and monthly losses, underscores the challenges faced by SHIB holders in a bearish market. With panic selling, declining Open Interest, and negative technical indicators, the outlook for SHIB remains bleak in the short term.
That said, the possibility of a recovery cannot be ruled out entirely. If the token manages to regain investor confidence and stabilize its price, it could stage a comeback and reclaim higher levels. For now, however, caution is advised, as the market remains firmly under bearish control.
