Crypto: Shiba Inu down 72% since its last peak. Analysis for July 10, 2024

After a meteoric rise, Shiba Inu is undergoing a major price correction. Let's take a look at the future prospects for SHIB.

Shiba Inu (SHIB) Price Status

After setting a higher low than its previous lows, Shiba Inu went from around $0.0000095 to $0.000045 in less than two weeks. Indeed, the second-highest valued meme coin saw its price increase by 390% in less than nine days. This surge came at a time when the number of SHIB tokens burned was at an all-time high. Furthermore, this event took place as the memecoin narrative attracted a good amount of liquidity to the crypto market. Unfortunately, this surge eventually came to an end. The crypto suffered a decline, bringing its price back to its identified value zone around $0.000022. Buying interest emerged from this price level, but it was not enough to keep Shiba above it, causing the crypto to continue its bearish trend.

At the time of writing, Shiba Inu is trading around $0.000016. The crypto is therefore down more than 72% since its last peak. Recently, SHIB seems to have bounced back from an area of ​​interest located around $0.000012. This interest seems to be sustained so far, but does not counter the short-term trend of Shiba, which is still oriented downward. Given the medium-long term structure, it still seems bullish. However, the crypto's latest fluctuations have pushed its price below the 50-day and 200-day moving averages, which naturally casts doubt on the continuation of this trend. In terms of price dynamics, we can observe that it continues to decrease, as evidenced by the price of SHIB itself as well as its oscillators. Thus, all of these elements naturally suggest reaching the next support identified around $0.000011, as the Shiba Inu continues on this path.

The current technical analysis was carried out in collaboration with Elie FT, a passionate investor and trader in the cryptocurrency market. Now a trainer at Family Tradinga community of thousands of self-employed traders active since 2017. You will find Lives, educational content and mutual assistance around the financial markets in a professional and friendly atmosphere.

Focus on derivatives (SHIB/USDT)

Open interest on SHIBUSDT contracts has not been this low since February. Thus, speculative interest on Shiba Inu is in full decline. On the liquidation side, they are not really marked, which demonstrates a healthy decline. Nevertheless, we can stipulate a subtle liquidation of short positions following the latest rebound of Shiba. On the funding rate side, we can see that they oscillate between positive and negative, demonstrating a balanced interest between buyers and sellers.

The three-month liquidation heatmap of SHIBUSDT shows that the liquidation zone just above $0.016 has been breached. This does not seem to have impacted Shiba’s demand, causing its price to continue lower. At present, the most significant liquidation zones are above the current Shiba price. The closest one can be noted, between $0.018 and $0.019. Besides the one noted on either side of $0.021, we can also point out the zones near $0.024 and, higher up, the one around $0.026 – $0.027. The approach of the price towards these levels could lead to a massive triggering of orders, thus increasing the risk of a period of increased volatility for the crypto. These zones can therefore represent a crucial point of interest for investors.

Shiba Inu (SHIB) Price Assumptions

• As long as SHIB price holds above $0.000012, we can anticipate a return to $0.000019. The next resistance to consider, if the bullish movement continues, could be located around $0.000020 – $0.000021. Higher up, we can note $0.000028. At this point, this would represent an increase of more than +73%.

• If SHIB price fails to hold above $0.000012, we could see a return to around $0.000011. The next support to consider, if the bearish move continues, would be $0.0000096. Further down, we can note the support at $0.0000086. At this point, this would represent a decline of close to -47%.

Conclusion

After a spectacular rise, Shiba Inu has suffered a sharp correction. Although there has been a recent rebound, its short-term trend and momentum remain bearish, raising doubts about an imminent recovery in its price. Thus, it will be crucial to carefully observe the price reaction at the various key levels to confirm or deny current assumptions. It is also important to remain vigilant against potential market “fake outs” and “squeezes” in each scenario. Finally, let us remember that these analyses are based solely on technical criteria and that the price of cryptocurrencies can also evolve rapidly depending on other more fundamental factors.