Shiba Inu Price Drops 22% Due to SHIB Holders' Skepticism
08/06/2024 01:00
Shiba Inu's price is in a downtrend and may continue to fall as investors are anticipating further declines.
Shiba Inu’s (SHIB) price is being affected by rising bearish sentiment among its investors, which is evident in their behavior.
If this skepticism intensifies further, the meme coin might find recovering from the five-month low difficult.
Shiba Inu Investors Vote for a Decline
The 22% drop in Shiba Inu’s price over the last 24 hours results from bearish investors and similar market conditions. Signs of SHIB holder’s negative sentiment became evident following the shift in funding rate.
The funding rate indicates that SHIB investors have been anticipating a decline, with their expectations aligning with the recent drop in price. Their concerns about a downturn were realized as soon as the price turned red.
Read more: How To Buy Shiba Inu (SHIB) and Everything You Need To Know
The Chaikin Money Flow (CMF) further illustrates that Shiba Inu investors have been actively withdrawing their investments. This trend of significant outflows highlights growing caution or dissatisfaction among the investor base.
CMF shows that the outflows have reached a two-month high, stressing out the scale of the withdrawals. This heightened activity substantiates the notable shift in investor sentiment regarding SHIB.
The increase in outflows reflects a broader trend of investors pulling back from Shiba Inu. This is potentially due to concerns about the token’s performance or broader market conditions reflected in the price.
SHIB Price Prediction: Breaching the Trend Line
Shiba Inu’s price at $0.00001105 fell below the support of $0.00001141, leaving the altcoin vulnerable to falling to the support of $0.00000898. This level has prevented further decline in the past, and SHIB could bounce back from it.
To recover and break the downtrend line, the meme coin must first turn $0.00001473 into support. Given the current challenges, this could be difficult, and SHIB might consolidate below this level.
Read more: Shiba Inu (SHIB) Price Prediction 2024/2025/2030
On the other hand, if SHIB investors change their stance and turn bullish again, recovery is possible. Breaching the downtrend line would invalidate the bearish thesis and help reclaim lost profits.
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Aaryamann Shrivastava is a technical and on-chain analyst at BeInCrypto, where he specializes in market reports on cryptocurrencies from diverse sectors, including Telegram Apps, liquid staking, Layer 1s, meme coins, artificial intelligence (AI), metaverse, internet of things (IoT), Ethereum ecosystem, and Bitcoin. Previously, he conducted market analysis and technical assessments of various altcoins at FXStreet and AMBCrypto, covering all aspects of the crypto industry, including...
Aaryamann Shrivastava is a technical and on-chain analyst at BeInCrypto, where he specializes in market reports on cryptocurrencies from diverse sectors, including Telegram Apps, liquid staking, Layer 1s, meme coins, artificial intelligence (AI), metaverse, internet of things (IoT), Ethereum ecosystem, and Bitcoin. Previously, he conducted market analysis and technical assessments of various altcoins at FXStreet and AMBCrypto, covering all aspects of the crypto industry, including...
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