Shiba Inu [SHIB] was being traded at $0.0000268 as of the latest data, showing a decline of 1.9% within 24 hours.
Ranked as the second-largest memecoin based on market capitalization, SHIB had managed to secure a 10% increase over the last month. However, a lack of strong buying interest has led to a slowdown in the upward trend.
Analysis of SHIB’s one-day chart revealed the formation of a right-angled ascending broadening wedge pattern. Typically, this pattern suggests a bullish continuation if the price surpasses the upper trendline.
Yet, the shrinking volume histogram bars hint at decreased trading activity and insufficient buying volumes to sustain an upward movement.
The Money Flow Index (MFI) was reported at 43, indicating a weak momentum. Additionally, the downward slope of this indicator suggests an influx of sellers into the market.
In contrast, the Chaikin Money Flow (CMF) displayed a positive value of 0.15, signifying that buying pressure still outweighed selling pressure.
With buyers and sellers in a battle for dominance, SHIB might experience consolidation within its current trading range.
Surge in Shiba Inu Exchange Deposits
Data from CryptoQuant outlined a notable increase in SHIB crypto deposits onto exchanges. On December 16th, SHIB witnessed the highest net influx of tokens to exchanges in almost five months.
Furthermore, in the recent two-day period, over 1.78 trillion SHIB tokens were moved to exchanges.
If traders persist in transferring their tokens to exchanges while demand fails to counter the selling pressure, it could trigger further declines in the memecoin’s value.
Crucial Levels to Monitor
The In/Out of the Money Around Price (IOMAP) data highlighted 43,080 addresses that acquired SHIB within the $0.000024 to $0.000025 range.
These addresses represent a robust support level, as traders might consider this range attractive for entry due to the profit potential associated with these addresses.
On the flip side, a selling zone is identified between $0.000030 and $0.000031, where more than 3 trillion SHIB tokens were bought by 37,230 addresses.
As SHIB nears this zone, it is likely to encounter resistance if traders holding at a loss decide to offload their holdings to mitigate their losses.
Bearish Leanings in Long/Short Ratio
Shiba Inu’s Long/Short Ratio indicated a prevalence of bearish positions over bullish ones in the past week. Currently standing at 0.96, this ratio has consistently stayed below 1 since December 7th.
The significant number of short positions implies that a majority of traders anticipate SHIB to continue its downward trajectory.