Shiba Inu – Can the Chainlink partnership help SHIB after its 35% fall?

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  • Shiba Inu strikes a Shibarium deal with Chainlink, for CCT standard adoption.
  • SHIB bulls show off, undoing most of the gains achieved in November.

As a seasoned researcher with years of experience in the cryptocurrency market under my belt, I must say that the recent developments surrounding Shiba Inu [SHIB] are nothing short of intriguing. The collaboration with Chainlink [LINK] for CCT standard adoption is indeed a significant step forward for Shibarium and could potentially boost investor sentiment. However, it’s important to remember that such collaborations often take time to reflect in the price action.

As an analyst, I’ve noticed that Shiba Inu [SHIB] and Chainlink [LINK] have reportedly sealed a partnership aimed at enhancing the functionality of Shibarium, Shiba Inu’s upcoming blockchain mainnet. This strategic move raises the question: could this development potentially shift the market momentum back in favor of the bulls following the recent bearish trend?

As per the official statement, this partnership enables Shibarium to incorporate Chainlink’s blockchain compatibility standard, known as CCT. This integration is expected to significantly boost Shibarium’s operational efficiency and security, particularly within the Decentralized Finance (DeFi) sector.

Additionally, this demonstrates Shibarium’s dedication to expansion, which could positively influence investors’ feelings. Yet, this particular advancement isn’t anticipated to affect Shiba Inu immediately.

Shiba Inu extends extreme selloff

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SHIB’s price movement has been quite volatile, with the recent trend showing a significant downturn.

Currently, the price is at $0.00002295 following a 12.84% drop, which accumulates to a weekly loss of 35.61%.

The strong demand to sell drove the price down, falling below $0.00002737 and $0.00002289. This price range, which coincided with the 0.5 and 0.618 Fibonacci retracement levels during the rally from September to December, suggested a high likelihood of a rebound.

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There’s a possibility that the heavy downward trend of Shiba Inu might continue, yet its Relative Strength Index (RSI) suggests it’s close to being overbought, which could indicate an area for possible buying back or accumulation.

On December 20th, Coinglass reported nearly $10 million worth of spot outflows, marking the largest daily outflows over the previous seven days. Yet, this was soon followed by a significant influx of funds that led to a positive net flow of approximately $7.94 million.

In the middle of the week, there was a noticeable increase in selling force, as the activity of large investors (often referred to as whales) picked up pace. The outflow of Shiba Inu (SHIB) tokens from these large holders surged significantly. On December 18th, the amount of SHIB tokens held by these large investors was $856.14 billion, but by the next day, it had escalated to a massive $2.75 trillion in SHIB.

As a researcher, I observed an interesting trend in the Shiba Inu (SHIB) whale activity. Specifically, on the 18th of December, there was a slight build-up of whale holdings, as large holder inflows increased from approximately 1.07 trillion SHIB to around 1.9 trillion SHIB the next day. However, it’s crucial to note that outflows during this period were notably higher than inflows, creating a strong bearish momentum.

In contrast, there were more token outflows from large holders, totaling 8.16 trillion, compared to inflows of 7.72 trillion during the same trading period.

As a market analyst, I’ve observed an intriguing trend in the derivatives segment related to Shiba Inu. The Open Interest-Weighted Funding Rates dipped into negative territory over the past 24 hours, suggesting that investors were capitalizing on the dip by purchasing more Shiba Inu coins. Remarkably, this behavior signaled a buying trend, which proved accurate as the price swiftly rebounded just a few hours later.

Read Shiba Inu’s [SHIB] Price Prediction 2024–2025

On Saturday morning, the funding rates had turned negative, hinting at possible further declines throughout the weekend.

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2024-12-21 13:12