Shiba Inu has dropped 10% as bulls struggle to defend the $0.000015 support. Will a retest of $0.00001365 follow, or will long positions trigger a rebound?
As meme coins lose bullish momentum, Shiba Inu has seen a significant 10% correction over the past three days. Currently, the SHIB token is trading at $0.00001525, with an intraday decline of 3.36%.
Following the pullback, Shiba Inu now risks losing the key demand zone at $0.000015. Could this lead to a sharper drop toward the $0.00001365 level?
Shiba Inu Price Analysis
On the daily chart, Shiba Inu’s price trend showcased a bullish rally of nearly 35% last week. However, the uptrend fails to hold above the 200 EMA line and a 23.60% Fibonacci level at $0.000016.
With a pullback of nearly 10% over the past three days, Shiba Inu now makes its third consecutive negative candle and trades at a market price of $0.00001518. With a 24-hour low at $0.00001479, the lower price direction in the daily candle reflects the bullish struggle to hold above the demand zone.
Furthermore, it highlights the retest of the recently broken inverted head-and-shoulder patterns. Amid the retest, the daily RSI line has dropped from the overbought region to the 14-day SMA at near 57.36. As the momentum declines, the possibility of a post-retest turnaround increases.
Considering the bulls’ regained momentum, the pattern breakout could target the 78.60% Fibonacci level at the psychological level of $0.000025. On the flip side, a bullish failure to hold above the demand zone will likely test the 50 EMA at $0.00001365. The next crucial support under the 50 EMA is the psychological support of $0.000010.
Derivative Traders Grab SHIB at Lower Prices
As the bearish influence grows over the Shiba Inu price chart, the derivatives market witnesses increased volatility. Based on Coinglass data, the funding rate has flipped negative to -0.0016%, with the open interest down by 5.21% at $245.55 million.
Furthermore, the 24-hour liquidations erased $1.66 million worth of bullish positions. Despite the short-term bearish dominance, the long positions are building up, as per Coinglass’s long-to-short ratio chart.
Over the past four hours, the long positions now account for 56.54%, pumping the long-to-short ratio to 1.30%. This highlights the derivative traders capturing the recent bottom and anticipating a potential turnaround in Shiba Inu.
Shiba Inu Burn Rate Spikes 6,519%, Hints at Bullish Rebound
Despite the ongoing price pullback, Shiba Inu’s burn metrics signal a potential bullish reversal. According to data from ShibBurn, the SHIB token burn rate surged by a staggering 6,519% in the last 24 hours, with over 28.29 million SHIB tokens removed from circulation.
This sudden spike in the burn rate may support a short-term price bounce, as the reduced supply strengthens bullish sentiment around Shiba Inu.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
