As the market for meme coins adjusts in response to Bitcoin’s recent downturn, currently hovering around $41,000, Shiba Inu is not immune to these market forces, having encountered a setback at its immediate resistance level. Despite this, several indicators, such as the development of Shibarium, Shibburn’s transactions hint at possible bullish outcomes. Nevertheless, there is increasing apprehension about a potential bearish regression, primarily due to a significant reduction in a crucial on-chain trend, which suggests that interest in SHIB price may be declining.
Long-Positions Continue To Get Liquidated
Currently, the market is experiencing increased selling pressure, as buyers struggle to initiate a strong recovery. Consequently, bulls are increasingly liquidating their Shiba Inu holdings as the memecoin faces hurdles in breaking through resistance levels. Recent data from Coinglass reveals that Shiba Inu price has experienced over $51K in liquidations in the past 24 hours, with buyers liquidating nearly $48K in long positions, indicating a weakening support level for the SHIB price.
Amid this rising bearish sentiment, there’s a noticeable decline in large transactions for Shiba Inu, suggesting a reduced interest from major investors or ‘whales’ in the SHIB price. According to information from IntoTheBlock, there has been a significant decrease in Shiba Inu’s large transactions, falling from a high of 81 to just 18 transactions. This trend points to declining confidence among SHIB holders, leading to lower volatility on the price chart.
A decrease in whale transactions often leads to reduced volatility in the price of Shiba Inu. When whales are less active, there are fewer large-scale buy or sell orders, which can stabilize the price. However, this can also mean less momentum for significant price movements. Additionally, the activity of whales is often seen as a barometer of investor sentiment. A decline in whale transactions might be interpreted as a lack of confidence in the short-term performance of SHIB, potentially leading to a bearish market sentiment.
Notably, Shiba Inu’s volatility has been declining for the last few days as it dropped from a peak value of 110% to just 69%. This can strengthen selling confidence for SHIB in the coming hours.
However, Shibarium saw a rebound in daily transactions amid selling sentiment, increasing from 1.16 million on January 13 to 1.97 million on January 14. This follows a period of decline from a high of 7.8 million daily transactions. Additionally, the Shibburn tracking service has observed a significant surge in the burn rate of Shiba Inu over the past week, with billions of the meme coin being effectively removed from circulation. This positive news is currently holding SHIB price above its fear zone.
What’s Next For SHIB Price?
Shiba Inu price continues to face bearish pressure in overcoming moving averages and it has remained below its 20-day Exponential Moving Average (EMA) at $0.0000097 in recent days, but sellers haven’t managed to push the price down to the support line. As of writing, SHIB price trades at $0.0000095, declining over 0.4% from yesterday’s rate.
The stable EMA trend lines and a Relative Strength Index (RSI) in bearish territory below the midline favor the sellers. If SHIB fails to rise from its current level or falls from the 20-day EMA, bears might attempt to drive the SHIB/USDT pair down to the $0.0000084 mark.
However, if SHIB breaks above the moving averages, it would suggest a weakening of bearish control. In that case, buyers could try to drive the pair towards the significant resistance zone at $0.00001 to $0.000012.
Over the last few hours, SHIB price is facing a surge in bullish dominance as the long/short ratio has surged above 1, currently trading at 1.377. SHIB price is set for an upward correction as 58% of total positions now expect a price increase.
Don’t miss an opportunity to explore related crypto trends including insights from Shiba Inu Price Prediction 2040, Kibho Cryptocurrency, Zcash Price Prediction, Hex Coin Price, and Enjin Coin Price Prediction.
