- SHIB’s price has risen by almost 10% in the last week.
However, the rally may be shortlived, as bearish momentum remains significant.
As a researcher with extensive experience in analyzing cryptocurrency markets, I believe that Shiba Inu (SHIB) may experience a price decline despite its recent 10% gain in the last week. While it’s true that SHIB has seen some growth, this rally seems to lack substance as it appears to be driven by market-wide trends rather than actual demand for the meme coin.
The popular meme cryptocurrency Shiba Inu (SHIB) could experience a drop in value based on recent market signals, potentially causing it to lose its current price increases in the near future.
Based on information from CoinMarketCap, the value of this altcoin has increased by nearly 10% over the past week and is currently being traded for approximately $0.00002298.
As a crypto investor, I closely monitored the daily price chart of this meme coin, but I couldn’t help but notice that the recent surge in value wasn’t rooted in genuine demand. Instead, it seemed more like speculation or hype driving the coin’s price upward.
The cryptocurrency in question has merely matched the market-wide expansion seen among cryptocurrencies over the past week.
SHIB has a rough patch ahead of it
Last week, SHIB‘s price experienced an upward surge, but there was a contrasting development in its Chaikin Money Flow (CMF). This divergence signaled a bearish trend for the CMF, which reflects the inflow and outflow of funds into the asset.
When an asset’s price fails to align with its Composite Moving Average (CMA), indicating a disparity, this situation could potentially signal a shift in the price trend. Such divergence suggests that buying momentum may be waning, even as the price continues to rise. Market players often view this discrepancy as an early warning sign of a possible price decrease.
At press time, SHIB’s CMF was -0.03.
Based on current market conditions, the indicators suggesting buying interest in SHIB‘s meme coin have weakened, implying a decrease in demand.
The RSI value stood at 41.80 for this security, whereas the Money Flow Index reading was 22.64.
Last week’s SHIB price surge might have been a fleeting trend, since traders predominantly opted for sell-offs rather than accumulation based on recent indicator readings. The coin market appears to lack significant fresh investment.
Additionally, the Elder-Ray Index of this altcoin showed a negative reading at the current moment in time. This metric signifies that there are more sellers than buyers in the market for this cryptocurrency.
When it is negative, bear power is dominant in the market.
As of this writing, SHIB’s Elder-Ray Index was -0.0000019.
The open interest for SHIB‘s derivatives has dropped by 47% since the start of April, as indicated by Coinglass’ data, currently sitting at approximately $57 million.
Read Shiba Inu’s [SHIB] Price Prediction 2023-24
As a researcher studying market trends, I’ve observed that when the open interest for an asset’s futures contracts significantly decreases, it suggests that traders have been closing their positions without replacing them with new ones.
Frequently, this arises from a lack of faith that prices will rise substantially in the near future.
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2024-05-09 01:11