- SHIB price has fallen 13% in the past 7 days.
- Futures open interest has fallen 27% since the beginning of the month.
Shiba Inu [SHIB] Key technical indicators observed on the 1-day chart confirmed the possibility of further decline in memecoin value.
This follows a period of rising prices due to a general surge in the meme market. SHIB price peaked at $0.00003 on April 28th and then started to decline.
Trading at $0.00002 at the time of this writing, the coin’s value has plummeted 33% since then. coin market cap data.
Reasons why SHIB is falling
Last week, SHIB’s price fell by 13%. The double-digit price drop is due to a decrease in demand for altcoins. Negative Chaikin Money Flows (CMF) at the time of writing confirm this.
This indicator measures the flow of money into and out of an asset. If its value is negative, it indicates the exit of liquidity from the market and often precedes a decline in asset value.
According to SHIB’s CMF measurements, it broke through the zero line on March 23rd and has been negative ever since.
Additionally, the Relative Strength Index (RSI), a key momentum indicator, was at 48.99 and trending down at the time of writing. This suggests that selling pressure is outweighing coin accumulation among market participants.
Confirming the current bearish trend, the dotted line that makes up SHIB’s parabolic SAR indicator changed its trajectory to sit above the coin’s price on April 2nd.
This indicator measures the trend direction and reversal of SHIB. If the dotted line is above the asset price, the trend is said to be bearish. The market sees this as a signal to exit long positions and take short positions.
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Additionally, SHIB’s Elderley Index, which estimates the relationship between the strength of buyers and sellers in the market, is negative at the time of writing and has been negative since April 1st. A negative Elder Ray index value is a bearish signal and indicates an increase in selling activity.
In the coin’s derivatives market, open interest in futures has been decreasing since the beginning of April. At $81.48 million at the time of this writing, SHIB’s futures open interest has declined 27% since April 1, according to . coin glass data.
Source: SHIB/USDT on TradingView
