Shiba Inu has seen a surprising increase in trading activity recently, but the overall sentiment remains bearish. Despite a 25% boost in trading volume, investors seem to be pulling back, which suggests decreasing confidence in the token.
The market is showing signs of volatility around key price levels, which could lead to further declines. This raises questions about why Shiba Inu’s price is still falling despite the higher trading volume and what the future might hold for this popular cryptocurrency.
Shiba Inu Faces Decline Despite Increased Trading Volume
Recent data from CoinGecko shows a 25% rise in Shiba Inu’s (SHIB) 24-hour trading volume. However, this surge has not led to an increase in the token’s price, which continues to fall. SHIB recently dropped by 5.6% to $0.00001624 during European business hours, despite community efforts to enhance its value through strategic token burns.
Coinalyze reports an 11.49% decrease in SHIB’s open interest (OI) over the past 24 hours, indicating a decline in investor interest. The current long-to-short ratio is 1.89 and is trending downward, reflecting bearish sentiment. Additionally, the aggregated funding rate is at -0.0037%, showing that traders are paying a premium to bet on falling prices, with the predicted funding rate even lower at -0.0152.
Shiba Inu’s Bearish Trend and Key Technical Indicators
Shiba Inu’s price action shows a consistent downtrend, marked by lower highs and lows. The cryptocurrency recently broke out of a descending triangle and is currently testing support to confirm this breakout. Both the 50-day and 200-day exponential moving averages (EMAs) indicate a strong downward trend, with the 50 EMA crossing below the 200 EMA, forming a ‘death cross,’ a bearish signal.
Resistance levels to watch include $0.00002362, $0.00002998, and $0.00003363. On the downside, potential support levels are $0.00001361 and $0.00000996, which could act as buffers if the market continues to fall.
Despite a significant increase in trading volume, Shiba Inu is experiencing strong selling pressure. Technical indicators like the death cross and bearish funding rates reinforce this negative sentiment. Investors should monitor key resistance and support levels closely and stay updated on any significant developments within the Shiba Inu ecosystem. The short-term outlook remains bearish unless positive news or developments can shift the trend.
Important:Â Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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