Shiba Inu [SHIB] is currently facing a bearish outlook with a potential price decline looming. The overall sentiment in the cryptocurrency market remains uncertain, making traders and investors hesitant to engage in memecoins. SHIB has seen a 3.50% price decline in the past 24 hours, trading near $0.0000119 with a 17% drop in trading volume, suggesting diminishing interest from market participants. Technical analysis shows that SHIB has been following a bearish descending channel pattern since December 2024, with lower highs and lower lows indicating a downward trend. Failure to break out of this pattern could result in a 30% decline towards the $0.0000084 level.
The current market sentiment reveals that 62% of top traders are shorting SHIB, indicating strong bearish sentiment. On-chain analytics show that 61.91% of top traders hold short positions, while only 38.09% hold long positions. Traders are heavily leveraged at $0.0000117 as support and $0.00001245 as resistance, with short positions outweighing long positions by a significant margin. This dominance of short sellers could potentially drive SHIB’s price lower in the near future, especially if broader market selling pressure increases.
To turn bullish, SHIB would need a shift in market sentiment or a daily candle closing above the $0.0000128 level. Currently, SHIB is trading below both the 50 and 200 Exponential Moving Averages on the daily timeframe, indicating a strong bearish trend with no signs of upward momentum. The low trading volume also increases the risk of a sudden dip, especially if market selling pressure intensifies. Traders and investors should monitor SHIB closely for any potential price movements and market sentiment shifts.
In conclusion, Shiba Inu [SHIB] is facing a bearish outlook with the potential for a price decline in the near future. The current market sentiment is overwhelmingly bearish, with the majority of top traders holding short positions on SHIB. Technical analysis indicates a downward trend in SHIB’s price movement, and failure to break out of the descending channel pattern could lead to a significant decline. Traders and investors should exercise caution and closely monitor market developments to make informed decisions regarding SHIB and other memecoins.
