Shiba Inu (SHIB), the popular meme cryptocurrency, has seen a sharp drop in price over the past 24 hours, plunging nearly 10%. Despite updates on the much-anticipated “Shib The Metaverse” project, SHIB holders appear unimpressed, with the coin’s value continuing to dip, reflecting broader concerns over the asset’s future.
“Shib The Metaverse” Fails To Reignite Enthusiasm
In a recent post on X (formerly Twitter), Shiba Inu’s marketing lead shared new details about “Shib The Metaverse,” a virtual ecosystem designed to foster community engagement and collaboration. Users will be able to create and share content, vote on proposals, and contribute to the growth of the platform. The announcement was expected to generate excitement, but SHIB’s price reaction tells a different story.
Trading at $0.000018, the token has recorded a 7% loss within 24 hours, making it the worst-performing asset among the top five meme coins by market capitalization. The steep decline underscores the growing dissatisfaction among SHIB holders, who seem unconvinced by the project’s potential to reverse the current downward trend.
Falling Market Activity Raises Red Flags
SHIB’s market activity has also taken a hit, as evidenced by a significant drop in open interest (OI) for the token. OI, which measures the total number of open futures contracts, reached an all-time high of $116 million on September 27. However, it has since plummeted 11% to $103 million, signaling a reduction in market participation. The decline in OI suggests that traders are closing their positions rather than opening new ones, a clear indication that bullish sentiment is fading.
This cooling interest comes as SHIB’s price failed to breach the $0.0000189 resistance level, further reinforcing the bearish outlook. If the downward momentum persists, SHIB could potentially retest its August 5 low of $0.000010, which would represent a significant setback for investors hoping for a recovery.
Liquidity Concerns Add to Bearish Outlook
Another worrying sign for SHIB holders is the movement of the Chaikin Money Flow (CMF) indicator, which is edging closer to negative territory. The CMF measures money inflows and outflows within a market, and a negative reading often indicates a liquidity outflow. Currently sitting at 0.05, SHIB’s CMF suggests that capital is gradually leaving the market, which could lead to further price declines if the trend continues.
While the outlook appears grim, all hope is not lost for SHIB holders. Analysts note that a sudden resurgence in demand could push the token’s price higher, potentially reaching $0.000028 if market sentiment shifts. However, without a clear catalyst, such as a breakthrough in adoption or a significant development within “Shib The Metaverse,” the chances of a rapid recovery remain slim.
Also Read: Shiba Inu’s Metaverse Launch – Will It Propel SHIB From A 6% Dip Back To 27% Weekly Gains?
For now, SHIB holders may have to brace for further losses as declining market interest and liquidity outflows continue to weigh on the coin’s performance. Investors will be closely watching for signs of a reversal, but until then, SHIB seems poised for more turbulence in the near future.
Shiba Inu’s recent struggles highlight the volatility inherent in the meme coin market, where hype and sentiment can shift rapidly. Despite promising developments like “Shib The Metaverse,” SHIB’s price is still on shaky ground, and only time will tell if the coin can regain its footing or succumb to further declines.
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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