Shiba Inu Flashes Sell-Off Signal, Price Poised for 15% Drop
In the midst of a confusing market sentiment, Shiba Inu (SHIB), the popular meme coin, is facing a significant price decline as it has formed a bearish price action pattern on its daily chart. This negative sentiment is not limited to SHIB alone, as it extends across the cryptocurrency landscape, affecting major coins like Bitcoin (BTC), Ethereum (ETH), and Solana (SOL).
According to CoinPedia’s technical analysis, SHIB appears bearish as it has broken down from a symmetrical triangle price action pattern on the daily time frame. This breakdown has shifted market sentiment towards a downtrend.
Despite the breakdown, SHIB is currently finding support at the 200 Exponential Moving Average (EMA) on a daily time frame, indicating a potential uptrend. However, if the meme coin breaches and closes a daily candle below the 200 EMA, there is a strong possibility of a 15% decline, targeting the $0.000015 level in the coming days.
The bearish thesis for SHIB will only hold if it closes a daily candle below the 200 EMA or the $0.000017 level; otherwise, it may fail to materialize.
This negative outlook is further supported by on-chain metrics. According to the on-chain analytics firm Coinglass, SHIB’s Long/Short ratio currently stands at 0.869, the lowest since late September 2024. This ratio indicates a strong bearish sentiment among traders.
Additionally, SHIB’s open interest has dropped by 7.67% over the past 24 hours, indicating an increasing liquidation of long positions as the price continues to decline. Currently, 53.5% of top traders hold short positions, while 47.5% hold long positions.
At the time of writing, SHIB is trading near $0.0000173 and has experienced a price decline of over 3.8% in the past 24 hours. Despite this decline, its trading volume has increased by 5%, indicating rising participation from traders and investors compared to the previous day.
As SHIB faces a potential 15% drop in price, investors and traders are advised to closely monitor the market and adjust their strategies accordingly to navigate the current bearish sentiment.
