Shiba Inu [SHIB] has experienced a lackluster performance in recent weeks, with a decline of 11% over the past month. Currently, the second-largest meme token by market cap is trading at $0.0000223.
The decline in SHIB’s performance can be attributed to increased selling activity and a lack of significant demand. The Relative Strength Index (RSI) on the one-day chart indicates a bearish trend with lower lows.
With SHIB’s RSI hovering around 40, close to oversold levels, there is a potential for a short-term correction once selling pressure is alleviated. However, without fresh demand, the price may consolidate at its current lows.
Additionally, the Moving Average Convergence Divergence (MACD) indicator highlights a high bearish pressure, as both the MACD line and histogram bars are in negative territory.
Traders should monitor the liquidity threshold at $0.0000185. If SHIB continues to trade sideways due to a lack of clear direction, a retest of this level may occur.
On the other hand, a resurgence in buying interest could signal a bullish reversal, potentially pushing the price towards the 0.5 Fibonacci level ($0.0000259), which previously acted as a strong support level.
Breaking above this level could signify an upcoming uptrend.
The Rising Activity of SHIB Whales
There is a resurgence in Shiba Inu whale activity, as reported by CryptoCrypto through IntoTheBlock analysis.
Large transactions exceeding $100,000 in SHIB have increased from 1.07 trillion to 3.75 trillion, marking a threefold surge within a 24-hour period.
Despite this uptick, the whale activity in SHIB remains relatively low compared to its weekly average, indicating the need for increased participation to drive significant price movements.
Bearish Trends in Derivatives Trading
The derivatives market for Shiba Inu exhibits bearish signals according to Coinglass data. Speculative trading activity has notably decreased, with over a 30% drop in derivative volumes.
Open Interest has also hit a record low of $54M.
Moreover, SHIB’s Long/Short Ratio has declined to 0.926, suggesting a higher proportion of short traders compared to long traders. The prevalence of long liquidations over short liquidations further supports the bearish outlook.
An increase in Open Interest is crucial to facilitate a bullish recovery and break out from the current consolidation phase.
Hence, if prevailing trends in the derivatives market persist, SHIB may remain range-bound in its price action.
Prospects for a SHIB Rally in 2025
The overall cryptocurrency market could witness modest growth in early 2025, potentially linked to the inauguration event of the future US President-elect Donald Trump.
This growth may provide the necessary momentum for SHIB to surge to multi-month highs above $0.0000334.
However, if the market has already factored in this event, it could lead to further bearish trends for the meme coin.
The meme coin sector experienced significant expansion in 2024, with total market capitalization soaring from $22 billion at the beginning of the year to $97 billion by the present time, as per CoinMarketCap.
A repetition of this growth pattern in 2025 could have positive implications for SHIB’s price trajectory.