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Shiba Inu Price Faces Downward Pressure Amid Market Decline

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Shiba Inu Price Faces Downward Pressure Amid Market Decline

Shiba Inu Price Faces Downward Pressure Amid Market Decline

The Shiba Inu coin experienced downward pressure on August 15, following a broad market slump that resulted in a 3.1% drop in the total cryptocurrency market cap. However, this market-wide decline may not be the only factor contributing to Shiba Inu’s price reversal. Bearish sentiment among traders and whale investors suggests that the meme coin could be poised for further declines in the days ahead.

Whale Outflows Weigh on Shiba Inu Price

Over the past 24 hours, SHIB’s price has dropped by 1.5%, currently trading at $0.00001359. On-chain data from IntoTheBlock indicates that large holders, or “whales,” may be offloading their SHIB tokens. Specifically, large holder inflows decreased by 32.29% between August 13 and 14, coinciding with a net positive SHIB inflow into exchanges amounting to 48 billion SHIB ($657,000), according to CryptoQuant.

Additionally, Shiba Inu’s open interest (OI) increased by 3.75% over the last 24 hours, indicating that more SHIB contracts were being opened. A comparative analysis with the cumulative volume delta (CVD) shows a 2.2% drop during the same period, which suggests the opening of short positions. This combination often signals bearish market sentiment, which aligns with the recent price decline.

Shiba Inu Price Faces Downward Pressure Amid Market Decline

Further analysis of the SHIB Liquidation Map on Coinglass reveals a significant imbalance, with more short positions being liquidated than longs. This points to a bearish outlook for Shiba Inu, likely driven by poor network growth and unfavorable market conditions.

Shiba Inu Price Faces Downward Pressure Amid Market Decline

The high trading volume around $0.00001358 highlights a key zone of interest for buyers, with demand accumulating around $0.00001327 and supply concentrated near $0.00001387.

SHIB Price Loses Critical Support Level

Technical indicators also support the prevailing bearish sentiment among retail and whale investors, suggesting a potential downside for Shiba Inu. The price chart shows SHIB breaking below the lower boundary of a rising channel, confirming a downtrend. However, the asset might find support around $0.00001350 and $0.00001100, which could serve as potential rebound zones if the decline continues.

Moreover, the narrowing Bollinger Bands suggest low volatility, often a precursor to increased downward pressure. Both the Relative Strength Index (RSI) and Chaikin Money Flow (CMF) indicate ongoing downward momentum, though a reversal could be possible if the price dips further.

Shiba Inu Price Faces Downward Pressure Amid Market Decline

The Shiba Inu price forecast suggests that if bulls manage to push the price above the top band of the Bollinger Bands indicator, the bearish outlook could be invalidated. In this scenario, SHIB would target the next major resistance level around $0.00001655.

Is Now the Right Time to Buy SHIB?

Despite the current downtrend and the break below its ascending channel, futures trading data indicates that many whales are prepared to buy SHIB at lower levels. Large buy orders totaling $1.775 million are positioned around $0.0000099, $0.0000109, and $0.0000119, reflecting a potential opportunity for long-term investors.

Shiba Inu Price Faces Downward Pressure Amid Market Decline

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