Shiba Inu [SHIB] investors are bracing for further turbulence as the popular meme coin continues its downward trajectory. After slipping below a critical support level at $0.000024, SHIB faces intensified selling pressure despite a notable outflow from exchanges.
The recent cascade of liquidated long positions has only exacerbated the coin’s losses, amplifying concerns among traders. Analysts suggest that unless Bitcoin [BTC] manages to hold above the $59,000 mark, SHIB could witness a further decline, possibly revisiting its next Fibonacci support level.
Market indicators paint a grim picture, with the Relative Strength Index (RSI) on the 12-hour chart signaling strong bearish momentum, hovering precariously close to oversold territory. While the possibility of a bounce from the $0.0000172 support level exists, the broader market sentiment, driven largely by Bitcoin’s performance, could drag SHIB down by an additional 19%.
Despite the downtrend, the On-Balance Volume (OBV) has maintained relative stability, suggesting that selling pressure may not be as overwhelming as feared. As long as the OBV holds above its lower support level, there remains a glimmer of hope for SHIB bulls eyeing a potential recovery.
However, data on Open Interest reveals a stark decline over the past ten days, indicative of a prevailing bearish sentiment among speculators. The surge in long liquidations further underscores the apprehension in the market, as forced selling adds to the downward pressure on SHIB’s price.
With uncertainties looming over both SHIB and the broader cryptocurrency market, investors are advised to exercise caution amidst the ongoing volatility, as further price swings remain a distinct possibility.
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Disclaimer: Please note that the viewpoints and perspectives expressed by the author, as well as any individuals referenced in this article, are intended solely for informational purposes. They should not be construed as financial or investment advice. It’s important to acknowledge that investing in or trading cryptoassets carries inherent financial risks.