Shiba Inu price fell 4% to $0.00001342 on Sunday, coinciding with Bitcoin breaking below the $60,000 support level. This renewed selling pressure led to price declines in major altcoins and impacted the meme cryptocurrency sector due to inherent volatility and speculative trading. The sell-off caused SHIB to deviate from a multi-month resistance, indicating a potential risk of a deeper correction.
Shiba Inu price faces a bearish trend reversal
Shiba Inu price prediction showed sideways movement throughout the week and struggled to break above the $0.000014 mark. Despite the recent market recovery, this consolidation market lacks the conviction of buyers to boost this asset.
Today, SHIB price marks another failed attempt to break the upper trend line, showing a long rejection candle to highlight the upper supply. Interestingly, the selling momentum remains despite 40 million SHIB being burned in the last 24 hours, resulting in a 3500% increase in the burn rate.
Normally, such a large burn would reduce the circulating supply and potentially support price stability or even a rally. In this case, however, the ongoing corrective trend suggests that market factors outweigh the impact of the burn and the price remains under pressure.
Shiba Inu saw a significant drop in open interest in August. According to Coinglass, SHIB’s open interest dropped from $37 million to $23.2 million, a drop of about 37%. This significant drop in OI indicates lower market participation or liquidity for SHIB and could be a sign of declining investor confidence.
Therefore, the correction could push the Shiba Inu price up 30% and retest the $0.0000095 level at the wedge pattern support.
Trading below the daily exponential moving average, this dog-themed meme coin highlights that the path to least resistance is to the downside.
However, the two converging trendlines of falling wedge patterns suggest fading bearish momentum. SHIB price is therefore poised for an upside breakout, which could signal the first sign of a trend reversal.
The Relative Strength Index (RSI) rose from oversold to 35%, increasing demand pressure at a reduced level.
The post-breakout rally could push the asset up 50% to $0.00002.
Frequently Asked Questions (FAQs)
The ongoing corrective trend and broader market factors outweighed the impact of the 40 million SHIB burn, resulting in a 4% price decline.
The 37% drop in open interest indicates lower market participation and waning investor confidence in SHIB, contributing to the price decline.
The falling wedge pattern indicates a steady correction, but also signals a possible breakout to the upside, which could lead to a trend reversal.
Sahil Mahadik
Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Equipped with a strong understanding of technical analysis, he keeps an eye on the daily price movements of major assets and indices. Attracted by his fascination with financial instruments, Sahil has enthusiastically turned to the emerging space of cryptocurrencies, where he continues to explore opportunities fueled by his passion for trading.
Disclaimer: The content presented may contain the personal opinion of the author and is subject to market conditions. Conduct market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.
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