SHIB Faces 30% Drop Amid Bearish Market Signals
Key Takeaways
- Shiba Inu (SHIB) has been in a descending trend channel since December 2024.
- The price could fall by up to 30% if the breakout above the upper boundary fails.
- 62% of top traders are currently betting on falling prices (short positions).
- Trading volume has dropped by 17% — a sign of waning interest.
- SHIB is trading below both the 50- and 200-day EMAs — a clear bearish signal.
SHIB Remains Trapped in a Downtrend
Shiba Inu (SHIB), one of the most well-known memecoins, is currently showing a weak technical picture. Since December 2024, the price has been moving within a so-called “descending channel” — a chart pattern characterized by consistently lower highs and lows. A breakout above the upper boundary of this channel has not yet occurred.
At the time of analysis, the price stood at approximately $0.0000119 — about 3.5% lower than the previous day. At the same time, daily trading volume dropped by 17%. Lower trading activity suggests that both retail and institutional investors are losing interest in SHIB.
Technical Indicators Argue Against a Recovery
On a daily basis, SHIB is trading below both the 50- and 200-day EMAs (Exponential Moving Averages). These moving averages are used by many traders as trend indicators. When the price is below both lines, it points to a continuing downtrend.
The next critical level lies at $0.0000128. Only if SHIB breaks through this resistance on a daily closing basis could the technical outlook improve. Until then, the risk of a further decline remains — particularly down to the lower boundary of the channel at around $0.0000084. This would represent a potential price loss of approximately 30%.
Traders Are Betting on Falling Prices
Data from analytics platform Coinglass shows that 61.91% of top traders currently hold short positions on SHIB. The long/short ratio stands at 0.615 — a clear indicator of bearish market sentiment.
Notably, open interest — the total volume of open positions — is concentrated at two price levels. Traders are heavily invested on the long side at $0.0000117, while many short positions are clustered around $0.00001245. In total, long positions amount to approximately $375,000, while the short side is significantly stronger at $952,000.
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This distribution suggests that short sellers currently have control of the market. If selling pressure increases across the broader market, SHIB could decline further.
What Could Reverse the Trend?
Two scenarios could potentially lift SHIB out of its current situation:
- A sudden shift in overall market sentiment, such as positive news about Bitcoin or regulatory easing.
- A daily closing price above $0.0000128 — which would be a technical buy signal.
Until these conditions are met, caution is advised. The current market environment calls for restraint, especially with speculative assets like memecoins.
Our Assessment
SHIB is under technical pressure. The descending channel, low trading volume, and clear dominance of short positions all indicate further downside potential. A decline of 30% is possible if the price does not soon break out of the downtrend.
Anyone invested in SHIB or considering an entry should closely monitor the price zones at $0.0000128 (resistance) and $0.0000084 (support). Without clear signals of a trend reversal, SHIB remains a high-risk investment.
Sources
- TradingView
- Coinglass
- AMBCrypto
| Symbol | DOGE |
| Coin type | Alt Coin |
| Transaction Speed | Medium |
| Pros |
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| Cons |
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| Further practical applications | |
| Price | $0.18 |
| 24h % | 4.95 % |
| 7d % | 17.07 % |
| 30d % | -10.72 % |
| 60d % | -21.10 % |
| 1y % | 21.67 % |
| Market Cap | $27,135,088,374.00 |
| Official Links | Website | Source Code |
| Socials | Reddit | X |
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