Why Shiba Inu Coin Price Is Struggling Despite 64% of Investors Betting on a Surge

SHIB price prediction

Shiba Inu price shows signs of resilience while eyeing immediate support below for potential relief from the price drop. The price action is facing heavy rejection around $0.00001400, which means the chances of further pullback to the next support around $0.00001200 are high. Meanwhile, the Shibarium network underwent an upgrade over the weekend that resulted in increased burns. Can this development turn the tide for Shiba Inu?

Shiba Inu Price Approaches $0.000012 Support

The SHIB price dropped 4% in the last 24 hours to trade at $0.00001368. Conversely, the trading volume for SHIB surged by 41.2% over the same duration. This signals that the selling pressure is on the rise.

The recent Shibarium network upgrade on August 9 had an incredible impact on the network. On August 11, the Shiba Inu burn rate skyrocketed by over 38,000,000%, inspiring optimism in its investors.

Shiba Inu price prediction shows that the asset is currently in a downtrend, as indicated by the series of lower highs and lower lows. The price is below the 50-day and 200-day exponential moving averages (EMAs), confirming the bearish trend.

Additionally, the 50-day EMA is well below the 200-day EMA, a bearish signal. The price action is below both, indicating sustained downward pressure.

Shiba Inu price has an immediate resistance around the 50-day EMA ($0.00001401) and another stronger resistance level near the 200-day EMA ($0.00001575).

The price sits just above a support zone at $0.00001340. If the current support fails, the next significant support level is around  $0.00001250.

The Relative Strength Index (RSI) is at 41.19, nearing oversold territory. While the trend is bearish, a potential bounce could occur if the RSI drops further. The Chaikin Money Flow (CMF) is at  -0.17, indicating rising sell pressure on SHIB, reinforcing the bearish outlook.

The price recently broke down from a rising wedge pattern, which is a bearish signal. This breakdown suggests a potential move lower, possibly towards the $0.00001250 level, if the current support fails.

Shiba Inu Price

If the SHIB price respects the $0.00001200 support and bounces back above the 200-day EMA, it may show a more pronounced reversal signal facilitated by increasing market strength. The SHIB targets would be around $0.00001900.

65% Investors Betting on SHIB Price Surge

Data from Coinalyze reveals that a sizeable number of market participants are betting that the Shiba Inu coin price will surge. The Shiba Inu Long/Short ratio shows that 64.18% of traders are Long on SHIB.

 

shib open interestAccording to data from IntoTheBlock, if the Shiba Inu coin price rises above $0.000016 (16% from the current price), over $6.7 billion worth of SHIB currently underwater will transition into profitability. 

SHIBA INU IOMAPAdditionally, Messari Research shows that the SHIB Sharpe ratio, the metric for measuring an asset’s risk and reward, is at 2.98.

SHARPE RATIOA Sharpe ratio of 2 and above indicates that the reward for investing in SHIB is currently higher than the risk, which is bullish for the price.

The post Why Shiba Inu Coin Price Is Struggling Despite 64% of Investors Betting on a Surge appeared first on CoinGape.


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