Shiba Inu price has plummeted by over 73% from its highest point in November. It was trading at $0.00001220 and has formed a highly bearish pattern that may drag it lower over time.
Shiba Inu Price Technical Analysis
The weekly timeframe chart shows that the SHIB price has plummeted from its December high of $0.00003330 to $0.00001215 as of today. It has remained much lower than the 50-week moving average at $0.000015.
SHIB price has continued to form a symmetrical triangle pattern whose two sides are about to converge. This triangle forms after the price has plunged, suggesting that it is part of the bearish pennant pattern formation.
Shiba Inu price remained below the Ichimoku cloud indicator. Therefore, the token is likely to continue falling as sellers target the important support level at $0.000006900, which is down by over 40% from the current level. A move above the 50-week moving average point at $0.000015 will invalidate the bullish SHIB forecast.
READ MORE: IREN Stock Price Forecast: Targets ATH as Revenue Surges 255%
SHIB Fundamentals Have Worsened
A closer look at some of the top fundamentals that affect a cryptocurrency’s movement shows that they have weakened in the past few weeks.
First, Shiba Inu’s demand has weakened, as evidenced by the daily volume. Its volume stood at $288 million in the last 24 hours, much lower than that of most tokens, including smaller ones like Bonk and Pepe.
Second, the SHIB price plunged as the futures open interest remained low. CoinGlass data shows that the interest has dived to $176 million, down from the year-to-date high of over $500 million. Falling open interest is a sign of low demand and liquidity.
Third, the Shiba Inu price may crash as its weighted funding rate turned negative. The funding rate is an important number that examines the small fee that bulls and bears pay to maintain their trades open in the futures market. A negative rate is a sign that investors anticipate that the future price will be lower than the current one.
Shiba Inu’s ecosystem is also not thriving, with Shibarium being a failed layer-2 project. It has less than $2 million in total value locked and no stablecoins in circulation. These numbers indicate that users have not found it as useful as other rival layer-2 blockchains.
The Shiba Inu price has also lost its popularity. For example, whale and smart money investors are not buying it, while no company has filed for a spot SHIB ETF this year.
READ MORE: Keeta Price Could Surge as Smart Money Buys KTA Before Mainnet Launch
