Shiba Inu (SHIB) is under pressure as its price nears a crucial support level at $0.0000181. With 142 trillion SHIB tokens yet to be burned, concerns about price stability continue to grow. Despite a minor 0.01% gain in the past 24 hours, the unburned tokens pose a serious threat to SHIB’s price. Analysts are watching several key factors, including bearish signals in SHIB’s derivatives market, key support levels, technical indicators, and investor behavior.
Bearish Sentiment in the Derivatives Market
The SHIB derivatives market reveals growing caution among traders. Both trading volume and open interest have declined, with volume down by 9.09% to $126.22 million, and open interest dropping by 1.65% to $54.48 million. The long/short ratio stands at 0.9186, showing more short positions than longs. However, data from OKX presents a more optimistic outlook, with a bullish ratio of 3.21, hinting at potential upward movement. Nonetheless, traders betting on price increases saw $1.02 million in liquidations, indicating that market sentiment remains cautious.
Key Technical Indicators and Support Levels
SHIB has found strong buying interest at the $0.0000181 support level, which has helped the price recover from sharp declines. However, the price risks further drops if it consistently closes below this level. The Relative Strength Index (RSI) stands at 55.15, signaling neutral momentum, while the MACD displays bearish signals as the MACD line remains below the signal line. These indicators suggest a potential slowdown in buying pressure, especially with a declining MACD histogram.
Investor Behavior and Price Forecasts
Despite these challenges, 53% of SHIB holders remain in profit, showing long-term investor confidence. Additionally, 79% of investors have held SHIB for over a year, reflecting strong holding patterns. Still, 73% of SHIB’s supply remains concentrated among large holders, which could increase price volatility. Analysts predict SHIB could trade between $0.0000152 and $0.0000187 in 2024, with a potential rise to $0.0000216 in 2025. However, if the 142 trillion tokens remain unburned, the price might face further downside pressure.
Read Also: Shiba Inu (SHIB) Approaches Potential Golden Cross: Immediate or 2025 Rally?