After a meteoric rise, Shiba Inu undergoes a significant price correction. Let’s examine the future prospects for SHIB together.
Shiba Inu Price Situation (SHIB)
Having marked a higher low than its previous ones, Shiba Inu rose from around $0.0000095 to $0.000045 in less than two weeks. Indeed, the second meme coin in terms of market capitalization saw its price increase by 390% in less than nine days. This rise occurred as the number of burned SHIB tokens was at its highest. Additionally, this event happened as the narrative of memecoins attracted a lot of liquidity to the crypto market. Unfortunately, this rise eventually ended. The crypto experienced a drop, bringing its price back to its identified value zone around $0.000022. Buying interest emerged from this price level but was insufficient to keep Shiba above it, causing the crypto’s downward continuation.
At the time of writing this article, Shiba Inu’s price is trading around $0.000016. The crypto is therefore down more than 72% from its last peak. Recently, SHIB seems to have rebounded on a zone of interest located around $0.000012. This interest seems supported so far but does not counter the short-term downward trend of Shiba. Considering the mid-long-term structure, it still seems bullish. However, the latest fluctuations in the crypto have brought its price below the 50-day and 200-day moving averages, naturally casting doubt on the continuation of this trend. On the price momentum side, it continues to decrease, as evidenced by the SHIB’s price itself and its oscillators. Thus, all these elements naturally suggest the reach of the next support identified around $0.000011, as Shiba Inu continues on this path.
The current technical analysis was conducted in collaboration with Elie FT, an investor and passionate trader in the cryptocurrency market. Today, he is a trainer at Family Trading, a community of thousands of proprietary traders active since 2017. There, you will find Lives, educational content, and mutual support around financial markets in a professional and warm atmosphere.
Focus on Derivatives (SHIB/USDT)
Open interest on SHIBUSDT contracts has not been this low since February. Thus, speculative interest in Shiba Inu is in full decline. On the liquidation side, they are not really marked, indicating a healthy decline. However, we can stipulate a subtle liquidation of short positions following Shiba’s last rebound. On the funding rates side, they oscillate between positive and negative, showing a balanced interest between buyers and sellers.
The three-month SHIBUSDT liquidation heatmap shows that the liquidation zone just above $0.016 has been breached. This does not seem to have impacted Shiba’s demand, causing its price to continue downwards. Now, the most significant liquidation zones are above Shiba’s current price. The closest one ranges between $0.018 and $0.019. Not counting those noted around $0.021, nearby zones include $0.024, and higher, around $0.026 – $0.027. The price approaching these levels could trigger massive orders, thus increasing the risk of a period of heightened volatility for the crypto. These zones can therefore represent a crucial point of interest for investors.
Hypotheses for Shiba Inu’s Price (SHIB)
- As long as the SHIB price remains above $0.000012, a return to $0.000019 can be anticipated. The next resistance to consider, if the upward movement continues, could be around $0.000020 – $0.000021. Higher up, we can note $0.000028. At this stage, this would represent an increase of over +73%.
- If the SHIB price fails to stay above $0.000012, a return around $0.000011 could be considered. The next support to consider, if the downward movement continues, would be $0.0000096. Lower down, we can note the support at $0.0000086. At this stage, this would represent a drop close to -47%.
Conclusion
After a spectacular rise, Shiba Inu has undergone a strong correction. Although there has been a recent rebound, its short-term trend and momentum remain bearish, raising doubts about an imminent recovery in its price. Therefore, it will be crucial to closely observe the price’s reaction to different key levels to confirm or refute current assumptions. It is also important to stay vigilant in the face of potential market “fake outs” and “squeezes” in each scenario. Lastly, let’s remember that these analyses are based solely on technical criteria and that cryptocurrency prices can also rapidly change based on other more fundamental factors.
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Family Trading est une Communauté de traders a compte propre active depuis 2017 offrant Lives, contenus éducatifs et entraides autour des marchés financiers dont celui des cryptomonnaies avec à ses côtés Elie FT, investisseur et trader de passion sur le marché crypto.
DISCLAIMER
Les propos et opinions exprimés dans cet article n’engagent que leur auteur, et ne doivent pas être considérés comme des conseils en investissement. Effectuez vos propres recherches avant toute décision d’investissement.
