Shiba Inu (SHIB), a popular meme coin, has dropped 18% in price over the past 24 hours, illustrating a broader market trend where overall cryptocurrency market capitalization fell by 5% during the same period.
Technically, SHIB's weakening bullish momentum and growing bearish sentiment suggest it may continue its downward trajectory. Specifically, the open interest (OI) in futures or options markets declined by 32%—a hallmark of bearish sentiment that traders are closing positions, anticipating further value drops, or seeking to minimize losses.
The Mean Dollar Invested Age (MDIA) of SHIB has also decreased, indicating that more investors are taking profits or cutting losses. This steady MDIA decline suggests heightened trading activity, corroborating a shift in market sentiment towards selling.
As of now, SHIB is trading at $0.000023. Its recent price fall towards the 20-day exponential moving average (EMA) suggests declining buying pressure, but this EMA serves as both a dynamic support and potential turning point for upward momentum if SHIB’s price stabilizes above it.
Should the price fall below the 20-day EMA at $0.000020, further selling might follow, pushing its price potentially down to $0.000016. Conversely, if it maintains support above the EMA, SHIB might reverse its trajectory aiming for $0.000028.
