- Shiba Inu (SHIB) has plummeted by 72% from its recent peak, now trading around $0.000016.
- Market indicators suggest potential further declines, with key support and resistance levels identified.
Shiba Inu Faces Significant Price Correction: An Expert Analysis
Shiba Inu (SHIB) has experienced a dramatic price correction, falling 72% from its recent peak of $0.000045 to approximately $0.000016. This notable drop raises critical questions about the cryptocurrency’s future and the market forces at play.
Shiba Inu Price Analysis (SHIB)
Shiba Inu experienced a meteoric rise, skyrocketing from $0.0000095 to $0.000045 in less than two weeks. This 390% increase was driven by high token burns and a surge in liquidity towards meme coins. However, the uptrend could not sustain, and SHIB’s price has since corrected to its current level around $0.000016.
The recent drop has brought SHIB below both its 50-day and 200-day moving averages, casting doubt on its mid-to-long-term bullish outlook. Current technical indicators and oscillators suggest continued downward momentum, pointing to the next support level around $0.000011.
Market Sentiment and Derivatives
Open interest in SHIBUSDT contracts is at its lowest since February, indicating a decline in speculative interest. Liquidations have been minor, suggesting a healthy decline, though there has been some subtle liquidation of short positions following SHIB’s latest rebound.
Funding rates for SHIBUSDT are oscillating between positive and negative, showing a balanced interest between buyers and sellers. The three-month liquidation heatmap reveals that the liquidation zone above $0.016 has been breached without significantly impacting demand, which continues to drive SHIB’s price downward.
Potential Price Movements
For SHIB to regain upward momentum, it must hold above $0.000012. If it does, a return to $0.000019 could be anticipated, with the next resistance around $0.000020 to $0.000021. If SHIB rises above $0.000028, it would signify a 73% increase.
Conversely, if SHIB fails to stay above $0.000012, the price could drop to $0.000011, with further support at $0.0000096 and $0.0000086, representing a potential 47% decline.
Conclusion
The recent fluctuations in Shiba Inu‘s price highlight the importance of monitoring key support and resistance levels. While the long-term outlook might still hold promise, the short-term trend remains bearish. Investors should stay vigilant for potential market shifts and false breakouts that could impact SHIB’s trajectory.