As November began, there was a notable increase in Bitcoin and altcoins as their values approached the resistance peaks seen in October. However, popular memecoins such as Shiba Inu and Dogecoin struggled to attract buyers at these higher resistance levels, resulting in a slight pullback. Currently, the on-chain data for Shiba Inu presents a bearish outlook with a steady decline in active wallet addresses, indicating downside concern.
Shiba Inu loses the trust of traders
SHIB’s price is struggling to maintain October gains amid increasing bearish pressure at resistance points. This leads to a marked decline in the number of new futures contracts as ongoing volatility subsides.
According to recent figures from Coinglass, there has been a significant drop in Open Interest (OI) in recent days. The OI metric has fallen from a peak of $14.8 million to the current figure of $13.1 million, indicating low trading sentiment for the memecoin.
A decrease in Open Interest alongside a downward trend in price indicates reduced volatility, which usually discourages traders from entering new positions. This leads to a growing tendency to sell and shift attention to other popular projects. Such a trend could potentially lead to a situation where SHIB’s price breaks through its support levels.
Additionally, insights from IntoTheBlock indicate growing concerns within the SHIB community. There is a noticeable downward trajectory in the number of active addresses, which has fallen from 4,700 to 3,700, representing an 18% reduction. This downturn may be due to SHIB’s limited utility and inability to achieve its bullish objectives, potentially leading to reduced capital inflows into the SHIB market.
What’s next for the SHIB Prize?
The Shiba Inu price recently saw a rise of over $0.000008 and efforts were made to extend these gains. However, the sellers had other intentions, which prevented the rally from rising further and tried to keep the price below the EMA20 trendline. At the time of writing, SHIB price is trading at $0.0000078, down more than 0.69% from yesterday’s price.
Should bears lower the price further, SHIB price could fall to $0.0000066-$0.000007. This level is crucial for the bulls to hold as a breakdown could send the price to a new low of $0.0000054.
During an uptrend, the bulls typically vigorously guard the 100-day EMA. If this support remains strong, it could indicate that the uptrend is still intact. The bulls are likely to try to provide fresh momentum towards the $0.0000082 level. If the price breaks above the level, we could see an increase towards $0.0000087.