Shiba Inu Price At Risk of Death Cross as Open Interest Turns Bearish

After a sustained rally over the past week, the Shiba Inu price is now at risk of a major bearish shift in the market. Bullish sentiment is changing as the combined crypto market is down 1.06% to $3.33 trillion. SHIB price has joined other top coins in shedding some of its gains, as the $0.000015 support zone is now threatened. Though SHIB has retained some longer-term growth trends, its key performance metrics show immediate selloff risk.

Shiba Inu Price and Key Metrics See Epic Shift

At the time of writing, the price of SHIB was changing hands for $0.00001581, down by 4.3% in 24 hours. The token dropped to this price from a high of $0.00001664, a sign of encroaching distress in the market. 

With this price outlook, key growth metrics, including trading volume and Open Interest, have also nosedived. CoinMarketCap data pegs the trading volume at $439,066,898.69, down 16.39%. Despite 14.68 trillion SHIB committed to the futures market, open interest slipped by more than 3.4%.

The bearish shift in the Shiba Inu price reflects this ongoing trend, as it largely denotes a potential offset in adoption. In an earlier SHIB price analysis, a corresponding price drawdown had different complementary performance metrics. As reported at the time, the token displayed a bull flag pattern, with a soaring burn rate.

Is SHIB Price at Risk of Death Cross?

The SHIB/USDT 4H chart shows that a death cross might be on the horizon for the Shiba Inu price. With the Moving Average Cross Indicator showing a convoluted cross at the 9-day and 21-day trends, a potential crossover might signal a trend reversal for the token.

Despite this Shiba Inu price outlook, the Relative Strength Index (RSI) indicator shows a neutral set-up, a shift from the SHIB weekly MACD setup that flashed a buy signal earlier this week. The fact that the broader market is facing a similar selloff trend has generally placed SHIB on a positive trend.

IntoTheBlock data shows the token currently maintains a 0.87 30-day correlation with Bitcoin. This implies a potential mirroring of BTC price trends, a move that has largely been positive since the start of this month. With this outlook, the dog-themed memecoin may be experiencing another healthy pullback overall.

Shibarium Milestone Triggers Optimism

One of the most watched SHIB ecosystem innovation hubs is Shibarium, the layer-2 scaling solution of the memecoin. The L2 protocol is on track to breach the 11,000,000 blockchain milestone as it records an average of 4 million transactions daily.

As the Shibarium Total Value Locked (TVL) nears the $3 million mark, the Shiba Inu price is poised to benefit from the adoption trend in the long term.