Shiba Inu (SHIB) is under pressure as it retreats back into a familiar price range. The meme coin’s recent rally has stalled, with selling pressure increasing and technical indicators pointing to a potential further decline.
After a promising breakout in mid-July, SHIB encountered resistance at the $0.0000205 level, reversing gains and returning to the price range established earlier in the month. This rejection, coupled with waning momentum and buying interest, has pushed the token below the crucial $0.0000172 support level.
On-chain metrics paint a bearish picture. The Relative Strength Index (RSI) is trending upwards, indicating growing bearish momentum. Additionally, the On-Balance Volume (OBV), which had shown signs of recovery, is now declining, suggesting a loss of buying pressure.
These factors increase the likelihood of SHIB testing the mid-range level of $0.0000151 or even the range low at $0.0000127. Moreover, SHIB’s underperformance compared to other meme coins highlights its relative weakness.
The futures market adds to the bearish sentiment. A surge in Open Interest during the price drop indicates heavy short selling activity. While long liquidations initially fueled the decline, persistent bearishness is evident in the continued decline of Open Interest.
The marginally positive funding rate is tempered by the recent spate of long liquidations, making traders cautious about taking long positions.
Overall, the technical indicators and on-chain data suggest a challenging period for Shiba Inu. While the cryptocurrency market is known for its volatility, the current trends point to a potential extended downturn for SHIB.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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