Shiba Inu Coin Price Faces Two Scenarios: 20% Crash Or Reversal

Key Insights

• Shiba Inu coin price has two scenarios. A price reversal could be possible if it holds the $0.00001240 level. Otherwise, a 20% crash is on the horizon.
• Traders have strongly bet on the bearish side, building $1.60 million short positions.
• Exchanges have witnessed $6 million worth of SHIB meme coin flowing over the past 48 hours, indicating potential accumulation.

Shiba Inu coin price is set to drop another 18 to 20% soon. The daily chart signals a bearish trend, aligning with the current market structure.

The meme coin’s price has dropped by 10%, forming four red candles in a row. This shift has changed the overall market sentiment for the token.

At press time, the Shiba Inu coin price was trading close to $0.0000123. Its price had dropped over 10% in the last 24 hours. Over the past seven days, it declined by 15%. During the same period, traders’ and investors’ participation jumped, increasing trading volume by 12%.

This rise in trading volume, while the price is making lower lows, indicates strong bearish momentum. Traders and investors might rotate their positions as sentiment shifts to bearish.

Shiba Inu Coin Price Action and Technical Analysis

With the continuous price decline, the SHIB has breached one of its key support levels at $0.00001240. Previously, this level provided strong support, and the meme coin witnessed a price reversal.

Shiba Inu coin price failed to hold its position, leading to further decline. It is now set to continue its downside momentum until it hits the next support level.

Experts suggest a further drop is likely if the Shiba Inu coin price closes a daily candle below $0.00001240. The price could decline by 18% in the coming days. It may reach the next support level at $0.00001030.

However, another condition could also pause the Shiba Inu coin price from declining further. A price reversal could follow if the meme coin doesn’t close a daily candle below $0.00001240. The market may react similarly to past trends, repeating history.

As of now, SHIB’s Relative Strength Index (RSI) stands at 34.70, indicating a bearish momentum in the market. This suggests the asset is currently oversold and could be due for a potential rebound.

Sellers remain in control of the market. Without strong buying interest soon, bearish sentiment could keep pushing SHIB’s price down.

$6 Million Worth of SHIB Outflow, Time to Buy?

Even with bearish market sentiment, investors are still accumulating tokens. On-chain analytics firm Coinglass reports that long-term holders continue to buy.

Spot inflow/outflow data shows a major withdrawal of SHIB coins. Exchanges recorded a $6 million outflow in the last 48 hours.

This substantial outflow from the exchanges indicates potential accumulation. It has the strength to minimize selling pressure and control downside momentum.

However, traders remain bearish as they have strongly bet on the downside. Traders are over-leveraged at $0.00001206, marking the support level. On the upper side, resistance is set at $0.00001368.

Traders have built $320k worth of long positions. Meanwhile, short positions amount to $1.60 million. Sellers are clearly in control of the market. Their actions are accelerating the downward momentum.