- Shiba Inu has a bullish daily structure but little volume to back that up.
- A large chunk of the February rally has been erased, and more losses are likely to follow.
As a seasoned analyst with extensive experience in the crypto market, I have seen my fair share of bullish and bearish trends. After conducting a thorough analysis of Shiba Inu [SHIB], it appears that while the coin has shown a promising bullish structure, there are several factors pointing towards a bearish outlook.
1. The cryptocurrency Shiba Inu (SHIB) exhibited a constructive chart formation hinting at a potential surge. However, on-chain indicators signaled that the meme token could be inflated in value. Yet, there were signs of increased popularity, which served as optimistic news.
1. The increase in whale transactions indicates a potential resurgence of interest and hoarding patterns. Could this be an indicator supporting a bullish forecast for Shiba Inu’s price? Let me share my findings from the technical analysis.
Volume indicators showed a tepid market sentiment
On the 16th of July, Shiba Inu experienced a rejection at the $0.00002 level, leading to a 19% decrease in its value about ten days later. So far, there have been no significant efforts to recover from this loss.
1) The MACD remained under the zero line and displayed a bearish cross-over, indicating that a significant downtrend might be imminent.
1. Option 1: Despite failing to surpass its peak levels seen in May and June, the OBV has managed to climb higher in July. While this offers a modicum of optimism, it doesn’t provide substantial upper hand for the bulls.
The CMF was at -0.03 and showed sell pressure could become hefty in the coming days.
Based on the Fibonacci sequence, potential points for a bearish turnaround in Shiba Inu’s price may emerge within the upcoming weeks. However, if SHIB bulls manage to instigate a significant surge in trading volume or evidence of accumulation becomes apparent, the bearish outlook might be reconsidered.
Futures markets showed speculators preferred not to participate
Over the last three days, the price increased by 5.8%, yet the Open Interest grew slightly from $70.2 million to $72 million. This discrepancy suggests a bearish outlook for the immediate future.
Read Shiba Inu’s [SHIB] Price Prediction 2024-25
As an analyst, I found myself skeptical about the potential rally of the meme coin given its current market conditions. While the funding rate indicated some bullish sentiment, the low open interest (OI) in conjunction with the volume metrics suggested that Shiba Inu wasn’t yet primed for a significant surge.
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2024-07-30 02:15