Shiba Inu crypto slumps 72% from its peak as of July 10, 2024 analysis.
After skyrocketing, Shiba Inu now faces a significant price correction. Join us as we discuss the future potential of SHIB.
Shiba Inu (SHIB) Price Situation
After surpassing previous lows, Shiba Inu surged from approximately $0.0000095 to $0.000045 in under two weeks. During this period, the second-largest meme coin by market cap soared by 390% in less than nine days, coinciding with record-high token burn rates. This surge coincided with increased liquidity flowing into memecoins. However, the rally eventually subsided, with Shiba Inu retracing to its established support zone near $0.000022. Despite initial buying interest, it proved inadequate to sustain Shiba’s price above this level, resulting in continued downward momentum.
At the time of writing, Shiba Inu trades around $0.000016, marking a decline of over 72% from its recent peak. Recently, SHIB appears to have found support near $0.000012, though this level hasn’t been sufficient to reverse its short-term downtrend. Despite a bullish medium-to-long-term outlook, recent price movements have pushed SHIB below its 50-day and 200-day moving averages, raising concerns about trend continuation. Price dynamics and oscillators indicate a continued decline, suggesting that Shiba Inu may approach the next support level around $0.000011 in the near future.
This technical analysis is a collaboration with Elie FT, a dedicated investor and cryptocurrency trader. Elie is currently a trainer at Family Trading, a community of proprietary traders active since 2017, offering live sessions, educational content, and mutual support in financial markets with a professional and welcoming approach.
Zooming in on Derivatives (SHIB/USDT): Open interest in SHIBUSDT contracts recently hit its lowest point since February, indicating declining speculative interest in Shiba Inu. Liquidation events show a healthy decrease without significant impact. However, there appears to be a subtle liquidation of short positions following Shiba’s recent rebound. Funding rates are fluctuating between positive and negative, reflecting balanced interest levels between buyers and sellers.
The SHIBUSDT liquidation heatmap spanning three months reveals breaches above the $0.016 liquidation zone, yet this hasn’t impacted Shiba’s demand, contributing to its ongoing price decline. Currently, the most notable liquidation zones lie above Shiba’s current price, notably between $0.018 and $0.019. Further zones are observed near $0.021, $0.024, and higher, particularly around $0.026 to $0.027. Approaching these levels could trigger significant orders, heightening volatility for the crypto. These zones are crucial points of interest for investors to monitor closely.
Price Scenarios for Shiba Inu (SHIB):
- Above $0.000012: Potential rally to $0.000019, encountering resistance at $0.000020 – $0.000021, and aiming for $0.000028 (+73% increase).
- Below $0.000012: Possible drop to $0.000011, with support levels at $0.0000096 and $0.0000086 (-47% decrease).
Summary: Following a notable surge, Shiba Inu has experienced a substantial correction. Despite a recent bounce, its short-term trajectory remains pessimistic, raising uncertainties about a quick rebound in value. Monitoring price reactions at critical levels is essential to confirm these scenarios, while remaining vigilant to potential market dynamics such as false breakouts and squeezes. These analyses rely solely on technical criteria, recognizing that cryptocurrency prices can swiftly shift due to various fundamental influences.