Shiba Inu’s (SHIB) price action is leading the meme coins in terms of the worst performance this month.
Recovery for SHIB holders could take some time, as current market conditions do not support a bullish outcome.
Shiba Inu Investors Step Back
Shiba Inu’s price is facing the brunt of the bears as the meme coin slipped to a three-month low. With the decline, selling pressure on Shiba Inu investors continues to rise, as visible in the downtick in the Chaikin Money Flow.
This indicator, which measures the accumulation and distribution of a cryptocurrency, is currently below the neutral line. This highlights increasing bearish sentiment among investors.
Shiba Inu CMF. Source: TradingView
In addition to the Chaikin Money Flow, Shiba Inu’s Open Interest has significantly declined. Open Interest represents the total number of outstanding derivative contracts and is a key metric for gauging market sentiment and potential future price movements.
Over the past week, Shiba Inu’s Open Interest has dropped by more than 50%, from $73 million to $34 million. This substantial decrease shows a notable shift in investor behavior and confidence.
Shiba Inu Open Interest. Source: Coinglass
The sharp decline in Open Interest suggests that investors are withdrawing their money from Shiba Inu, largely due to the ongoing price decline. This withdrawal further reinforces the growing selling pressure and bearish outlook for the cryptocurrency.
SHIB Price Prediction: Recovery Will Take Some Time
Shiba Inu’s price, trading at $0.00001799, is already below the critical support of $0.00002093. As investors withdraw their investments, the meme coin could now suffer the consequences of the decline.
The meme coin will likely either hover under $0.00002093 or face a drawdown to $0.00001473. In either case, consolidation will likely be the next step for Shiba Inu’s price, with recovery postponed.
Shiba Inu Price Analysis. Source: TradingView
This bearish thesis is only invalidated if the buying pressure makes a comeback. This would drive the price upwards again, potentially sending it above $0.00002093. A further push would flip $0.00002267 into support.