• Shiba Inu continues to experience a turbulent market scenario, signaling potential further declines.
• The cryptocurrency’s recent price action has reverted to a previous range, posing challenges for investors.
• Industry analysts have noted a significant uptick in sell-offs, pointing to weakening market confidence.

Shiba Inu faces persistent market pressures with increased selling activity, leading to bearish projections.

Shiba Inu Retraces to Earlier Price Range

Shiba Inu [SHIB] has stumbled back into a previous price range after facing rejection at a prior support level turned resistance around $0.0000205. This movement has repositioned SHIB within the trading range established earlier this month. Analysis of recent on-chain data emphasizes an elevation in selling pressures, which could translate into continued downward momentum.

Bearish Momentum Gains Strength

After failing to sustain above the critical $0.0000205 level, SHIB’s price plummeted nearly 20%, landing below the $0.0000172 threshold. Key indicators, like the Relative Strength Index (RSI), reflect intensifying bearish momentum. The On-Balance Volume (OBV) index, which sought some recovery recently, has also begun to dip again, signifying a potential test of mid-range support around $0.0000151 and lower range support at $0.0000127. Such behavior contrasts sharply with other popular meme coins, which have better maintained their value over recent periods.

Futures Market: Analyzing the Sentiment Shifts

Detailed examination of the futures market during SHIB’s price drop on July 17-18 shows a spike in Open Interest (OI) from $57 million to $127 million, suggesting an inflow of short sellers and cementing the bearish bias. Despite a marginally positive funding rate, the prevalence of long liquidations has shaken confidence among traders, deterring long positions in the near future. This continued negative sentiment in the futures market indicates a cautious approach among investors.

Conclusion

Shiba Inu’s current market trajectory highlights significant bearish pressures and increased sell-offs, echoing broader market concerns for long-term holders. The outlook suggests that without a substantial market reversal or positive catalysts, SHIB is poised to test lower support levels, underscoring the need for strategic vigilance among investors.