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Highlights
- Shiba Inu Futures Open Interest dropped nearly 40% in a fortnight, indicating reduced speculative interest and investors exiting this asset.
- A falling wedge pattern governs the current downtrend in the SHIB price
- Over the past four days, SHIB holders experienced $3.215 million in long liquidations.
The crypto market kicked off August with a bearish trend, igniting renewed selling momentum across most major digital assets. This selling wave began with Bitcoin’s pullback from $70,000 earlier this week and has been amplified by market fear, uncertainty, and doubt (FUD) due to geopolitical tensions in the Middle East. Shiba Inu price has followed this downward path, as meme cryptocurrencies tend to react more swiftly to market shifts.
Also Read: Shiba Inu News: Revolut Offloads 63B SHIB & Other Crypto, What’s Next?
Shiba Inu Price Poised for Major Breakout
Over the past two weeks, Shiba Inu price has been undergoing a steady decline, confined by a falling wedge pattern characterized by two converging downward trendlines. This setup has progressively squeezed the price into a narrower range.
During this period, Shiba Inu price plummeted from $0.00002 to $0.000015, a 25% decline, while its market cap dropped to $8.81 billion. Mirroring this downtrend, Open interest in SHIB futures fell from $53.5 million to $32.78 million, registering a loss of 38%. This decline in OI could suggest a broader loss of confidence or a shift in market sentiment, with investors pulling out of the asset.
The Bollinger Band indicator, testing the lower boundary, suggests that sellers are currently dominating the market.
Should the selling pressure continue, Shiba Inu price forecast hints at an additional 35% drop to reach the lower trendline at $0.0000095. Until the chart setup is intact, this dog-themed meme coin SHIB could continue to wobble with two trendlines.
Also Read: Breaking: Bitcoin Nears $65K As US Job Data Teases Fed Dovish Stance
However, analysis of the correction reveals that the decline in SHIB price is accompanied by reduced trading volume, suggesting that the selling momentum is weakening. This pattern points to a fragile downtrend that may be ripe for a reversal.
Moreover, the falling wedge pattern typically indicates that a downtrend may be nearing its end. Therefore, a potential breakout above the upper trendline could convert it into a support level and extend the asset’s price to $0.00002 and then to $0.00003.
Frequently Asked Questions (FAQs)
1. What is meant by 'Open Interest (OI)' in futures trading?
2. What implications does the 'long liquidation of $3.215 million' have for the SHIB market?
3. What might a potential breakout above the upper trendline signify for SHIB
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