The cryptocurrency market is witnessing another bearish wave, with Bitcoin leading the decline and dragging along several popular altcoins, including the meme coin Shiba Inu (SHIB). Over the past 24 hours, SHIB has faced significant selling pressures, leaving traders asking whether this might signal a bounce-back opportunity or continued losses.
Shiba Inu Price Update: Market Performance
Currently, Shiba Inu is trading at $0.00000872, registering a 2% drop in the last 24 hours. The coin’s price has dipped below the critical support level of $0.00000888 but has found temporary stabilization near its 20-day EMA. This technical movement hints at a tug-of-war between buyers and sellers as trading volumes decline.
Despite this dip, buyers are attempting to gain momentum. A sustained price movement above the EMA trend line could potentially take SHIB beyond $0.00001, with possibilities of hitting $0.0000112. However, if resistance persists, the price might fall further, testing new lows around $0.0000085 or even $0.0000077.
Declining On-Chain Metrics: Challenges Ahead
Data from Coinglass paints a cautious outlook as open interest in SHIB dropped significantly from $145 million to $118 million. This decline indicates waning volatility and reduced trader interest. Moreover, SHIB liquidations worth $352K were recorded in the past day, with buyers accounting for the majority of the closed positions ($302K).
Additional concerns arise from Shiba Inu’s burn rate, which has plunged by 23.8% in the last 24 hours. Whale activities, often a sign of institutional interest, are also subdued. According to Santiment, SHIB’s whale transfer growth recorded only a 110% uptick in transactions over $100,000, far below its potential performance.
Is Recovery Possible?
Although Shiba Inu is under pressure, the broader crypto market remains optimistic, fueled by speculations that the Federal Reserve might cut interest rates. If SHIB recovers its position above key moving averages, it could reignite market enthusiasm, driving the price beyond $0.00001. Buyers are closely watching for such signs to validate a recovery rally.
Shiba Inu Holders: Monitoring Market Trends
For investors considering Shiba Inu, keeping an eye on macroeconomic conditions like federal monetary policies and Bitcoin’s performance is critical. Equally important is monitoring on-chain metrics to gauge market sentiment and potential price action.
For those looking for a Shiba Inu-related product, Ledger Nano X offers secure hardware wallets suitable for storing SHIB and other cryptocurrencies safely. This hardware wallet is an excellent choice for long-term holders prioritizing security.
Conclusion: Volatility Ahead
Shiba Inu finds itself at a crossroads, with declining metrics suggesting bearish momentum yet market conditions leaving room for potential recovery. The coming days will be crucial as traders and long-term holders observe how SHIB prices react to ongoing developments. Stay tuned for timely cryptocurrency updates and guidance to navigate this unpredictable market.
