- Shiba Inu witnesses a surprising boost in trading activity, despite bearish trends.
- Recent data reveals a significant pullback from investors, indicating waning confidence.
- Market volatility around key price points suggests potential for further declines.
Discover why Shiba Inu’s price remains bearish despite a surge in trading volume, and what the future holds for this popular cryptocurrency.
Shiba Inu Experiences Increase in Trading Volume Amidst Price Drop
Recent statistics from CoinGecko indicate a notable 25% rise in the 24-hour trading volume of Shiba Inu (SHIB). However, this uptick in trading activity has not translated into a price increase. Instead, SHIB continues to decline, casting doubts on the sustainable growth of the asset. The price recently dipped by 5.6% to $0.00001624 during European business hours, despite the community’s efforts to bolster its value through strategic token burns.
Investor Sentiment and Market Indicators Show Bearish Trends
According to Coinalyze, SHIB’s open interest (OI) saw an 11.49% decrease in the past 24 hours, suggesting withdrawing interest among investors. The current long-to-short ratio is at 1.89 and trending downward, a clear indicator of prevailing bearish sentiment. Additionally, the aggregated funding rate stands at -0.0037%, which means traders are willing to pay a premium to bet on declining prices. The predicted funding rate is even lower, at -0.0152.
Technical Analysis Supports Bearish Outlook
Shiba Inu’s price action reveals a consistent downtrend, highlighted by lower highs and lows. The cryptocurrency recently broke out of a descending triangle and is testing support to confirm this breakout. The 50-day and 200-day exponential moving averages (EMA) are indicating a firm downward trend. Notably, the 50 EMA has crossed below the 200 EMA, forming a ‘death cross,’ which is typically a bearish signal.
Resistance levels to keep an eye on include $0.00002362, $0.00002998, and $0.00003363. On the downside, price points like $0.00001361 and $0.00000996 could provide support if the market continues to drop below its fair value gap.
Conclusion
Despite a notable increase in trading volume, Shiba Inu remains under significant selling pressure. Technical indicators such as the death cross and bearish funding rates underscore this sentiment. Investors should closely monitor key resistance and support levels while staying informed about ongoing developments in the Shiba Inu ecosystem. The near-term outlook appears bearish unless substantial positive news or developments can reverse this trend.
