- Despite the fall in value in the past few weeks, SHIB’s Futures traders have continued to open long positions.
- SHIB’s steady decline has led to the formation of a descending triangle.
- The lower trendline of the triangle forms a critical support level.
Shiba Inu’s [SHIB] price is at a critical juncture as it forms a descending triangle. Despite the bearish market sentiment, Futures traders remain optimistic.
Formation of a Descending Triangle
Leading meme coin Shiba Inu [SHIB] has formed a descending triangle, which it may break below if market sentiments remain bearish. At press time, SHIB exchanged hands at $0.000023, trading close to the lower trendline, which created a critical support level. When an asset’s price declines, a descending triangle is formed to suggest to market participants that the downward price movement may continue.
What Next for SHIB?
An assessment of SHIB’s price movements hinted at the possibility of a break below the support line. For example, the meme coin’s Relative Strength Index (RSI) sat at the neutral line of 50.0 and was in decline at the time of writing. This signaled that coin distribution was about to outpace accumulation among market participants. If the bears force a decline below the triangle’s lower trendline, which forms support, readings from SHIB’s Fibonacci Retracement showed that the meme coin’s value may drop under $0.00002 to trade at $0.000013. However, if sentiment reverses and the bulls regain market control, SHIB’s value may rally toward $0.000027.
Futures Traders Unmoved by Recent Losses
Despite the steady decline in SHIB’s value, its Futures market participants have remained resilient. This was gleaned from the uptick in the coin’s Futures Open Interest since the beginning of May. According to Coinglass data, at $66 million at press time, this has grown by 20% since the 1st of May. SHIB’s Futures Open Interest refers to the total number of the coin’s Futures contracts that have yet to be settled or closed. When it rises this way, it indicates an increase in market participants entering new positions.
Conclusion
While SHIB’s price continues to decline, forming a descending triangle, Futures traders remain optimistic, opening long positions. The market sentiment for SHIB is at a critical juncture, and the coming days will determine whether the meme coin can hold its support level or break below it.
