- Despite a recent rally, Shiba Inu (SHIB) faces potential price decline as bearish momentum persists.
- Key indicators suggest a weakening buying momentum, with the coin’s Chaikin Money Flow (CMF) trending downward.
- SHIB’s futures open interest has also seen a significant decline, indicating low market confidence in the coin’s short-term price hike.
Shiba Inu’s recent rally may be short-lived as bearish momentum continues to dominate, hinting at a potential price decline in the near future.
Shiba Inu’s Price Rally: A Closer Look
Shiba Inu’s price has seen a nearly 10% increase in the past week, currently trading at $0.00002298. However, this rally appears to be unsupported by actual demand for the meme coin, with the growth largely reflecting the general trends in the cryptocurrency market over the past week.
Bearish Momentum and Key Indicators
Despite the recent price increase, Shiba Inu’s Chaikin Money Flow (CMF) – an indicator that measures the flow of money into and out of an asset – has been trending downward, forming a bearish divergence. This suggests a potential reversal in the price trend, indicating that the buying momentum may be weakening. At the time of writing, SHIB’s CMF stands at -0.03.
Other key momentum indicators also point to a decline in buying pressure. The coin’s Relative Strength Index (RSI) is at 41.80, while its Money Flow Index (MFI) is at 22.64. These values suggest that traders are favoring sell-offs over accumulation, casting doubt on the sustainability of the recent price rally.
Decline in Futures Open Interest
Further evidence of the bearish sentiment surrounding Shiba Inu comes from its derivatives market. The coin’s futures open interest has seen a 47% decline since the start of April, standing at $57 million at the time of writing. This suggests that market participants are exiting their positions without opening new ones, indicating low confidence in the possibility of a significant price hike in the short term.
Conclusion
In conclusion, despite a recent rally, Shiba Inu faces potential price decline as bearish momentum persists. Key indicators suggest a weakening buying momentum, and the coin’s futures open interest has also seen a significant decline. Investors and traders should exercise caution and closely monitor market trends and indicators.
