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Crypto: Shiba Inu Down 72% From Last Peak – Analysis July 10, 2024
After a meteoric rise, the Shiba Inu undergoes a significant correction in its price. Let’s examine together the future prospects for SHIB.
Shiba Inu (SHIB) Price Situation
After hitting a higher low than previous ones, Shiba Inu has surged from around $0.0000095 to $0.000045 in less than two weeks. In fact, the second largest meme coin by market cap has seen its price increase by 390% in less than nine days. This surge occurred when the number of SHIB tokens have been burned was at an all-time high. Furthermore, this event took place when the memecoin narrative attracted a significant amount of liquidity into the cryptocurrency market. Unfortunately, this surge eventually came to an end. The cryptocurrency experienced a decline, bringing its price back to its identified value zone around $0.000022. Buying interest emerged from this price level, but it was not enough to keep Shiba above it, causing the cryptocurrency to continue its downward trend.
At the time of writing, Shiba Inu price is trading around $0.000016. The cryptocurrency is, therefore, down more than 72% from its last high. Recently, SHIB seems to have bounced from an area of interest located around $0.000012. This interest seems to have been supported so far, but it is not enough to counter the short-term bearish trend of Shiba. Given the medium-long term structure, it still looks bullish. However, the recent fluctuations of the cryptocurrency have pushed its price below the 50-day and 200-day moving averages, naturally casting doubts on the continuation of this trend. On the price dynamics side, we can observe that it continues to decline, as evidenced by the SHIB price itself and its oscillators. Therefore, all these elements naturally suggest that the next support identified around $0.000011 could be reached as Shiba Inu continues on this path.
The current technical analysis was conducted in collaboration with Elie FT, a passionate investor and trader in the cryptocurrency market. Today he is a trainer at Family businessa community of thousands of proprietary traders active since 2017. You will find Live, educational content and mutual assistance on financial markets in a professional and friendly atmosphere.
Derivatives Focus (SHIB/USDT)
SHIBUSDT open interest has been at its lowest since February. Hence, speculative interest in Shiba Inu is in full decline. On the liquidation side, they are not particularly sharp, demonstrating a healthy decline. However, subtle liquidation of short positions could be established following the recent Shiba rebound. As for funding rates, they are oscillating between positive and negative, demonstrating balanced interest among buyers and sellers.
The three-month SHIBUSDT liquidation heat map shows that the liquidation zone just above $0.016 has been breached. It does not seem to have had an impact on the demand for Shiba, causing its price to continue to decline. Currently, the most significant liquidation zones are located above the current price of Shiba. The closest one can be noted between $0.018 and $0.019. Aside from the one noted around $0.021, one can also point out the areas near $0.024 and higher, around $0.026 – $0.027. The price approaching these levels could trigger massive orders, thus increasing the risk of a period of high volatility for the cryptocurrency. These zones can, therefore, represent a crucial point of interest for investors.
Shiba Inu (SHIB) Price Hypothesis
- As long as the price of SHIB remains above $0.000012, a return to $0.000019 can be expected. The next resistance to watch out for, if the upward move continues, could be around $0.000020 – $0.000021. Further up, we can note the $0.000028 level. At this point, this would represent an increase of over +73%.
- If SHIB price fails to stay above $0.000012, a retracement around $0.000011 can be expected. The next support to consider, if the downside movement continues, would be $0.0000096. Further down, we can see the support $0.0000086. At this point, this would represent a decline close to -47%.
Conclusion
After a spectacular rise, the Shiba Inu has undergone a significant correction. Although there has been a recent rebound, its short-term trend and dynamics remain bearish, raising doubts about an imminent recovery in its price. Therefore, it will be essential to carefully observe the price reaction at different key levels to confirm or invalidate current hypotheses. It is also important to remain vigilant against potential “fake outs” and “squeezes” of the market in each scenario. Finally, we recall that these analyzes are based solely on technical criteria and that cryptocurrency prices can also evolve rapidly due to other more fundamental factors.
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Family business
Family Trading is a community of proprietary traders active since 2017 that offers live sessions, educational content and support on financial markets, including cryptocurrencies, with Elie FT, an investor and trader passionate about the cryptocurrency market, at its side.
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