Amid the confusing market sentiment, Shiba Inu (SHIB), the popular meme coin, is poised for a notable price drop as it has formed a bearish price action pattern on the daily chart. This negative sentiment extends across the cryptocurrency landscape, including Bitcoin (BTC), Ethereum (ETH), and Solana (SOL).
Shiba Inu technical analysis and upcoming levels
According to CoinPedia’s technical analysis, SHIB appears bearish as it has broken off from a symmetrical triangular price action pattern on the daily time frame. This slump has shifted market sentiment toward a downtrend.
Despite the disruption, SHIB is currently finding support at the 200 Exponential Moving Average (EMA) on a daily time frame, indicating a potential uptrend. However, if the meme coin breaks a daily candle below the 200 EMA and closes, there is a high chance of a 15% decline targeting the $0.000015 level in the coming days.
SHIB’s bearish thesis only holds if it closes a daily candle below the 200 EMA or the $0.000017 level, otherwise it may fail.
Bearish on-chain metrics
This negative outlook is further supported by on-chain metrics. According to the on-chain analytics company Mint glassSHIB’s Long/Short ratio currently stands at 0.869, the lowest since the end of September 2024. This ratio indicates strong bearish sentiment among traders at the time of writing.
Furthermore, SHIB’s open interest has fallen 7.67% over the past 24 hours, indicating increasing liquidation of long positions as the price continues to decline. Currently, 53.5% of top traders have short positions, while 47.5% have long positions.
Current price momentum
At the time of writing, SHIB is trading around $0.0000173 and has experienced a price drop of over 3.8% in the past 24 hours. During the same period, trading volume increased by 5%, indicating rising trader and investor participation compared to the day before.