- SHIB has declined by 19.91% over the past 24 hours.
- Shiba Inu declined to a four-month low as holders panic sell.
Over the past day, as the crypto market crashed, memecoins have not been spared. One of these memecoins is Shiba Inu [SHIB] which has experienced a strong dip.
Over this period, SHIB has declined to a four-month low of $0.0000116. Since hitting this level, the memecoin has made a slight recovery.
At the time of writing, Shiba Inu was trading at $0.0000141, marking a 19.91% decline in daily charts. The memecoin has also dropped on weekly and monthly charts by 20.21% and 42.19%, respectively.
These recent market conditions raise a vital question: what’s driving the dip?
Why is Shiba Inu down today?
According to AMBCrypto’s analysis, SHIB has declined to a four-month low as investors turn bearish, resulting in panic selling.
As such, most traders have started selling their assets over the past day to avoid further losses thus minimizing loss while those who were in profitable positions closed their trades to maximize profit.
Source: Coinglass
It was observed that this trend of investors closing their positions, especially as Futures Open Interest (OI) declines to a record low.
According to Coinglass data, Shiba Inu’s Futures OI has declined by 41.64% to $165.51 million. Such a dip reflects investor’s lack of confidence in the market.
Source: Coinglass
Additionally, SHIB holders have seen massive liquidations over the past. Some have been forcefully forced out of their positions, while others close their positions.
As such, there have been over $7.2 million of long positions liquidated.
Source: TradingView
This selling pressure is evidenced by a declining Relative Strength Index (RSI) which has dropped from 39 to an oversold territory of 24, over the past three days. Such a drop implies that sellers are in total control of the market.
As such, the recent surge in Trading Volume witnessed over the past day implies higher sell orders in the market.
This selling pressure is confirmed by a negative CMF, which has dropped to -0.11.
Source: Coinalyze
Finally, bearish sentiments have taken hold of the market as SHIB holders turn bearish across major exchanges.
As such, Shiba Inu’s Funding Rate has turned negative with the Aggregated Funding Rate dropping to -0.0207 while the Predicted Aggregated Funding Rate was at -0.0202.
This implies that bears are predicted to continue dominating the market.
What’s next for SHIB?
In conclusion, SHIB was experiencing massive panic selling as bears dominated the market. With surging liquidations and selling pressure, a further drop could be observed soon.
Realistic or not, here’s SHIB market cap in BTC’s terms
Therefore, if these conditions continue, the memecoin could drop to $0.000012. If this level fails to hold, it will drop to $0.00001088.
However, a recovery could see SHIB reclaim $0.000016 and then attempt $0.00001780.
