Shiba Inu Braces for Bearish Weather Threatening to Disrupt SHIB’s Bullish Trend
Shiba Inu is currently facing a downturn amidst a series of bearish signals, characterized by decreasing transaction volumes and a mixed market sentiment.
The memecoin is struggling to navigate a challenging period as bearish indicators continue to grow. Over the past seven days, SHIB prices dropped by nearly 15%, hitting a daily low of around $0.0000178 on June 21.
In response to the mounting bearish cues, Lucie, Shiba Inu’s social media marketing lead, has issued a call to action for investors. In a recent post, Lucie criticized the investment behaviors of major players in the market, suggesting that they are more focused on the speculative nature of the ‘crypto casino’ rather than on stable, development-focused ecosystems.
The Shiba Inu supporter emphasized the importance of seriousness in investment strategies and highlighted Shibarium as a “drama-free” and community-driven project.
Recent data supports Lucie’s concerns, as the number of large SHIB transactions has declined significantly. The decrease in large transactions indicates waning interest from major investors, aligning with the critique of the speculative nature of current market investments.
Furthermore, SHIB futures open interest has declined, signaling a reduction in speculative activity. The drop in open interest suggests that investors are closing their positions, reflecting a lack of confidence in the token’s future price increases.
Additionally, the SHIB open interest-weighted funding rate has experienced fluctuations, dipping into negative territory. Negative funding rates indicate that short positions are paying long positions, signaling a bearish market sentiment.
Despite the bearish signals, there is a glimmer of hope for SHIB prices in the form of a bullish technical setup known as the ‘falling wedge.’ The falling wedge pattern suggests that an asset’s price, while consolidating in a downtrend, is losing bearish momentum and preparing for a potential reversal to the upside.
According to technical analysis, the Shiba Inu token price could potentially rally over 80% to reach a theoretical price target near $0.0000326. However, with SHIB prices testing the lower trendline support of the wedge and the surrounding bearish cues, there is a risk of breaking below and invalidating the pattern, leading to more bearish pressure for the Shiba Inu token.