Shiba Inu (SHIB), has managed to become the most prominent asset of recent times among meme coins. So what was the reason for this? SHIB’s 1200% increase in October was undoubtedly the most important factor. Following this rise, SHIB Seems to be a little off right now. In fact, when we look at the general picture, we can see that it has started to lose its value.
meme coinsFor the most part, the market has managed to capitalize on upbeat market trends and is bullish. When we look at the examples from the past, we can clearly see this situation. SHIB also managed to stand out as the memecoin that best followed this upward trend.
SHIB, which rose more than 20% on Friday, created a positive perception that it could regain its previous levels. However, it should be noted that there are some obstacles in front of SHIB.
It actually looks a bit difficult for SHIB to continue posting green candles on its short-term forward chart. The reason for this is actually a very clear ‘pessimistic trader sentiment’.
At the time we brought this compilation of analysis to you, SHIB was continuing to move ‘south’ on many exchanges. Generally, a positive funding rate highlights the optimistic trader sentiment, while a negative rate underlines the bulk bearish sentiment.
Sentiment is often a key factor in driving any trend further. However, given how things have been going for SHIB lately, it doesn’t look like this altcoin will be able to sustain its uptrend for long.
of SHIBOI curve” also appeared to be heading ‘south’ at the time of writing. A high ‘Open Interest’ usually corresponds to the generation of speculative interest from derivatives traders. It also indicates that additional money is flowing into the ecosystem in parallel.
When we look at the current missing levels, it is possible to say that derivative traders do not show much interest in this cryptocurrency at this point.
At the same time, the long liquidations managed to pass the ‘short liquidations’ on 20 November for more than 389.8 thousand dollars. When this scenario occurs, it seems that the market starts to stay close to short-term traders rather than long-term traders.
Looking at the difference between long and short term traders at this stage revealed that the majority of traders are in a bearish trend and the number of ‘shorts’ has significantly exceeded the number of longs.
Even on the price chart, SHIB was trading below its moving average at the time of writing. Memecoin is stuck between a major support level and a resistance level.
Given the broader sentiment of traders, the likelihood of SHIB revisiting $0.00004193 in the next 24 hours seems more likely than the probability of a retracement above $0.00005686.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.