Shiba Inu (SHIB) and Chainlink (LINK) have recently announced a partnership aimed at boosting the operations of Shibarium mainnet. Could this alliance potentially help SHIB recover from its recent downturn?
The official statement reveals that the collaboration will enable Shibarium to integrate Chainlink’s blockchain interoperability standard, CCT. This move is expected to improve the efficiency and security of Shibarium, particularly in the realm of decentralized finance (DeFi).
This partnership also signifies Shibarium’s dedication to expansion, which could positively influence investor confidence. Nevertheless, its immediate impact on Shiba Inu’s price remains uncertain.
Shiba Inu Faces Significant Sell-off Pressure
SHIB has undergone a turbulent price journey, with its most recent movement tilting heavily towards the bearish side.
Currently, SHIB is trading at $0.00002295, having dropped by 12.84%, leading to a total weekly decline of 35.61%.
The intense selling pressure forced the price below the levels of $0.00002737 and $0.00002289. These levels, in alignment with the 0.5 and 0.618 Fibonacci retracement levels from the rally between September and December, were anticipated to serve as potential areas for a price rebound.
Despite a possibility of further bearish momentum, Shiba Inu is approaching oversold conditions according to the Relative Strength Index (RSI), hinting at a potential accumulation zone.
Notably, on the 20th of December, Coinglass reported significant spot outflows of nearly $10 million, marking the largest daily outflows in the past week. However, this was swiftly followed by a positive netflow of $7.94 million through subsequent accumulation.
Further into the week, selling pressure was augmented by increased whale outflows. Large holder outflows surged from 856.14 billion SHIB on December 18th to 2.75 trillion SHIB on December 19th.
Although there was some whale accumulation evidenced by a slight rise in large holder inflows from 1.07 trillion SHIB on December 18th to 1.9 trillion SHIB the following day, the outflows significantly outweighed the inflows, driving the prevailing bearish sentiment.
During the same trading period, large holder outflows remained dominant at 8.16 trillion tokens compared to 7.72 trillion in large holder inflows.
In the derivatives domain, Shiba Inu’s Open Interest-Weighted Funding Rates slid into the negative zone within 24 hours before hinting at a potential shift towards positive territory. This pattern indicated that investors were capitalizing on the dip, as validated by a subsequent price recovery.
However, Saturday morning saw a return to negative funding rates, signaling the potential for further downside during the weekend.