Shiba Inu Price Dips Amid Rising Volume – Key Support Levels to Watch

Shiba Inu price continues to go downward despite increased global adoption from leading brands and startups. Recently, the Shib community, via Change.org, asked Binance to commence burning SHIB tokens using a portion of the token trading fees. The move was aimed at the long-term success of the Shiba Inu token.

The price of SHIB dropped 6.1% during American trading hours on Thursday to trade at $0.00001626. Shib developers continue to build despite the dwindling price, with the number of transactions on the network hitting an all-time high today, per Shibarium Scan.

Shiba Inu Price On-chain Metrics Signal Rising Bear Power

According to Coinalyze, SHIB open interest (OI) has been down 13.07% in the last 24 hours, signifying that investors are pulling funds from the asset. Moreover, the ratio of traders who are Long on SHIB to those Shorting the asset is at 1.89 and on a downward trend, indicating investors are bearish on the asset. 

The current SHIB aggregated funding rate is -0.0037%, which shows traders are willing to pay a premium to bet on declining prices. This suggests that traders expect SHIB prices to fall further. Coinalyze data shows that the predicted funding rate is lower at -0.0152.

SHIB Price Analysis: Has to Fill This Gap Before Bulls Return

Shiba Inu price is in a downtrend, characterized by lower highs and lower lows. The asset recently broke out of a descending triangle, retesting the bottom support to confirm the breakout. 

There is little support between the current price and the zone of market imbalance around $0.0000115. The recent candles have shown selling pressure, confirming the bearish sentiment.

The Shiba Inu price forecast shows the asset is trending below the 50-day and 200-day exponential moving averages (EMA), confirming the downward trend. Furthermore, the 50 EMA just crossed below the 200 EMA, signaling a death cross. SHIB price action is expected to trend even lower in the coming days.

Key resistance levels to watch for include $0.00002362, $0.00002998, and $0.00003363, while $0.00001361 and $0.00000996 may provide further support for price breaks below the fair value gap (FVG).

Even though CoinGecko data shows a 25% increase in 24-hour trading volume, it is relatively low, suggesting a lack of buying interest at the current price levels.

The relative strength index (RSI) is at 40.94 and also crossed below its 14-day SMA, which confirms that the indicator may continue moving downward, signaling increasing bearish momentum. The Chaikin money flow (CMF) is at -0.02 and heading downward, indicating small but increasing selling pressure.