- SHIB’s price has fallen by 13% in the past seven days.
- Its futures open interest has dropped by 27% since the beginning of the month.
Shiba Inu’s [SHIB] key technical indicators, observed on a one-day chart, confirmed the possibility of a further decline in the memecoin’s value.
This follows a period of price rally due to the general surge in the meme market. SHIB’s price peaked at $0.00003 on 28th April and has since initiated a decline.
Exchanging hands at $0.00002 as of this writing, the coin’s value has since cratered by 33%, according to CoinMarketCap data.
Why SHIB may fall
In the last week, SHIB’s price has dropped by 13%. The double-digit price drop is due to a decline in demand for the altcoin. Its negative Chaikin Money Flow (CMF) at press time confirmed this.
This indicator measures the flow of money into and out of an asset. When its value is negative, it signals liquidity exit from the market and often precedes a decline in an asset’s value.
Readings from SHIB’s CMF showed that it breached the zero line on 23rd March and has since been negative.
Further, its key momentum indicator, the Relative Strength Index (RSI), was 48.99 and trended downward at press time. This suggested that selling pressure outpaced coin accumulation among market participants.
Confirming the current bearish trend, the dotted lines that makeup SHIB’s Parabolic SAR indicator changed course to be positioned above the coin’s price on 2nd April.
This indicator measures SHIB’s trend directions and reversals. When its dotted lines rest above the asset’s price, the trend is said to be bearish. The market views it as a signal to exit long positions and take short ones.
Read Shiba Inu’s [SHIB] Price Prediction 2024-25
Also, SHIB’s Elder-Ray Index, which estimates the relationship between the strength of buyers and sellers in the market, was negative at press time and has been so since 1st April. A negative Elder-Ray Index value is a bearish signal, depicting an uptick in selling activity.
In the coin’s derivatives market, its futures open interest has declined since the beginning of April. At $81.48 million as of this writing, SHIB’s futures open interest has fallen by 27% since 1st April, according to Coinglass data.
Source: SHIB/USDT on TradingView
