Shiba Inu (SHIB) is struggling to break out of a falling channel pattern after a short-lived rally. Amid bearish pressure from derivatives and profit-taking by long-term holders, will SHIB drop to the key support level at $0.000010?
With a pullback among top meme coins, Shiba Inu continues to face challenges escaping the falling channel pattern. Will SHIB surpass the overhead trendline or fall to the critical $0.000010 support level?
Shiba Inu Price Analysis
Shiba Inu has been exhibiting a falling channel pattern since early May, when it failed to break above $0.000017. After dropping below the 50-day EMA, the meme coin reached a monthly low near $0.000012.
Currently, SHIB is trading at $0.00001288, experiencing an intraday pullback of nearly 2%. Despite a 5% price surge on Monday, which hinted at a potential breakout from the falling channel, the intraday pullback signals a possible bearish reversal.
However, the MACD and signal lines are approaching a bullish crossover, indicating potential momentum.
In the event of a breakout rally, the 23.6% Fibonacci level at $0.00001590 is a key price target. Short-term resistance lies at the 100-day EMA at $0.00001418.
Conversely, critical support remains at the lower boundary of the falling channel and the psychological $0.000010 level.
Long-term Investors Book Profits
Amid the 6.3% price crash on June 5, Shiba Inu on-chain data reveals significant profit-taking by long-term investors on June 4. According to IntoTheBlock’s Holding Time of Transacted Coins indicator, 4.44 trillion SHIB tokens, with an average holding period of one year, were sold, reflecting sales likely at a profit given the price levels before the crash.
This reflects substantial profit-taking by investors who held Shiba Inu tokens for nearly a year, signaling declining confidence.
Derivatives Traders Anticipate Pullback in SHIB
With the intraday pullback, the Coinglass data showcases a surge in bearish pressure in Shiba Inu derivatives. The long-to-short ratio chart indicates that short positions have increased to 53.66% over the past four hours, reducing the long-to-short ratio to 0.8636.
This suggests a greater bearish influence, anticipating a steeper correction in Shiba Inu.
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