November’s dawn was marked by a noticeable upswing in Bitcoin and other altcoins, with their values nearing the resistance highs seen in October. However, renowned meme cryptocurrencies like Shiba Inu and Dogecoin had a hard time garnering buyers at these elevated resistance levels, causing a minor retreat. At present, Shiba Inu’s on-chain data paints a bearish picture with a steady decline in active wallet addresses, suggesting potential downward risks.
Shiba Inu’s Waning Trader Confidence
The SHIB token is finding it tough to uphold its gains from October in the face of mounting bearish pressure at resistance points. This has led to a marked drop in the initiation of new futures contracts as the ongoing volatility decreases. Recent data from Coinglass indicates a substantial reduction in Open Interest (OI) over the last few days. The OI metric has plummeted from a high of $14.8 million to its current value of $13.1 million, hinting at a low trading sentiment for the meme cryptocurrency.
A fall in Open Interest, coupled with a price downtrend, suggests diminished volatility, which generally discourages traders from opening new positions. This results in a growing tendency to sell and divert attention to other trending projects. This pattern could potentially trigger a situation where SHIB’s price breaks through its support levels.
Increasing Concerns within the SHIB Community
Insights from IntoTheBlock reveal growing concerns within the SHIB community. There’s been a noticeable downward trend in the number of active addresses, which have fallen from 4,700 to 3,700, marking an 18% reduction. This downturn may be attributed to SHIB’s limited utility and its failure to achieve its bullish objectives, possibly leading to a reduced inflow of capital into the SHIB market.
What Lies Ahead for SHIB’s Price?
Shiba Inu’s price recently surged past $0.000008, and attempts were made to further these gains. However, sellers had other plans, thwarting the rally’s further surge and aiming to keep the price below the EMA20 trend line. At the time of writing, SHIB’s price stands at $0.0000078, falling over 0.69% from the previous day’s rate. If bears push the price further down, SHIB’s price could slide toward $0.0000066-$0.000007. This level is crucial for the bulls to maintain because a breakdown could push the price to a new low of $0.0000054.
Typically, during an uptrend, the bulls staunchly defend the 100-day EMA. If this support remains strong, it would imply that the upward trend is still in play. The bulls are likely to attempt another push toward the $0.0000082 level. If the price breaks above this level, we could see a surge toward $0.0000087.
For those interested in keeping a close eye on these developments, the cryptoview.io application can be a useful tool.
