With the Bitcoin price back under the $59,000 level, the broader market, including Shiba Inu, experiences another bearish sentiment cycle. The increased fluctuations near the $60,000 support level have increased uncertainty in the broader market due to increased volatility.
Amid such market conditions, the meme coins are at a crucial stage as the increased supply in the broader market generally leads to a massive crash. Will Shiba Inu rise like a phoenix in this bear market for a breakout rally?
SHIB Trapped in a Channel
One such meme coin is the second largest in its segment, Shiba Inu, which has declined by 70% from its 52-week high at $0.00004567. The meme coin is currently trading at $0.00001362 and preparing for a second consecutive bearish day with a 0.94% decline during the Asian market hours.
In the broader sense, the meme coin forms a falling channel pattern over the logarithmic daily chart. Further, a bearish cycle starting from the rejection phase near the overhead resistance trend line and a potential double-bottom formation at $0.00001350.
Source: Tradingview
The daily RSI line shows a massive bullish divergence since the last bull cycle, projecting a high likelihood of a bullish breakout. It also highlights the strong demand for the meme coin at lower levels.
Furthermore, the DMI indicator, on the other hand, shows the VI lines failing to sustain a bullish crossover and regaining the bearish alignment with the ADX line, which is witnessing a downtick.
Hence, the momentum indicators show a bearish cycle in motion, but the momentum of the cycle is declining.
Over $10 Billion SHIB Bought Above Current Levels
Based on the global in and out of the money indicator (Intotheblock), the circulating volume of Shiba Inu reflects a massive indifference. With just 20.96% of the volume in the money and 72.53% out of the money, almost $10 billion worth of Shiba Inu are bought at higher prices.
Meanwhile, the at-the-money range between $0.000013 and $0.000014 accounts for $879.69 million worth of Shiba Inu, 6.51% of the total volume.
Shiba Inu Volume Plummets 48% in Derivatives Market
In the derivatives market, the Shiba Inu open interest declined slightly by 0.54% to $28.48 million. However, the volume dropped massively by 48% to $22.04 million.
Source: CoinGlass
The long-to-short ratio over the exchanges is at $0.90, reflecting a bearish inclination. Furthermore, the Shiba Inu open interest trend in 2024 reveals a massive drop from its 52-week high of $137.93 million and is close to the early January values of $18.90 million.
However, the Shiba Inu coin is expected to spike above the $50 million mark.
Exchange reserves have dropped by 0.05% in the past 24 hours as per Cryptoquant and are currently at $142.64 trillion. Furthermore, the exchange net flow has increased by 134%, reflecting a massive deposit over exchanges, leading to a surge in selling pressure.
The on-chain indicators, such as transfer volume, active addresses, and transactions, reflect a positive trend.
The total number of Shiba Inu transfers has increased by 89% in the past 24 hours, the active addresses have jumped by 57% in the last 24 hours, and the number of transactions over the network has increased by 23%.
Shiba Inu Targets This Week
Based on the trend-based Fibonacci levels, $0.00001266 is solid support and the potential launchpad for the next breakout rally.
Read more: Shiba Inu Price Predictions
On the upside, the potential targets for the meme coin are at 23.60%, 38.20%, and 50% Fibonacci levels at $0.00001370, $0.00002099, and $0.00002454 respectively.
Disclaimer: The analytical piece aims to provide data to investors, with no intention to serve as investment advice. Do your research before planning to invest in the cryptocurrency.
