Shiba Inu Price Forecast: Here’s Why SHIB Tumbled 22% Despite BTC, ETH Rally

FXEmpire.com -

Shiba Inu price broke below $0.000024 mark on June 4 2024, down 22.4% in the last 2 weeks, however, mounting SHORT positions in the derivatives markets suggests more downside could follow in the days ahead

SHIB Price Decline Enters Danger Zone

In the last week of May, Shiba Inu price struggled for traction as the spot ETH ETFs approval on May 23 attracted investor attention and capital towards mid-ranged memes like PEPE and Floki Inu (FLOKI).

As the euphoria surrounding the landmark approval cools off, the global crypto market cap has attracted a $200 billion boost in the first 4 days of June alone.

But curiously the demand for SHIB has failed to recover this month, with the second-largest memecoin falling behind in the ongoing market recovery phase.

Shiba Inu Price Action (SHIB/USD) | June 2024 | TradingView

Looking at TradingView’s daily price chart, SHIB price has decreased 22.4% from $0.000029 on May 21, tumbling below the $0.000024 mark at the time of writing on June 4.

This sustained decline over the last two suggests the overwhelming sentiment surrounding the Shiba Inu markets is now firmly bearish despite growing optimism around the imminent ETH ETF inflows.

SHORT Traders Deploy $2M Leverage

Another key indicator of the growing bearish sentiment across Shiba Inu markets is the unusually high leveraged SHORT positions mounted by speculative traders this week.

Coinglass’ Liquidation map data tracks the amount of leverage contracts currently listed for a specific asset across recognized derivatives trading platforms. It provides clear insights into changes in investor sentiment for the assets’ short-term price prospects.

Shiba Inu price vs. SHIB Leverage SHORT/LONG Contracts | Coinglass

Shiba Inu futures markets witnessed an influx of SHORT contract this week, far outpacing the volume of active LONG positions.

As seen above, bear traders have deployed $2.34 million leverage on SHORT positions with the 20% boundaries of the current SHIB prices. Meanwhile, in comparison the total volume of LONG contracts stands at a lowly $1.02 million.

This $1.32 million shortfall means that SHORT traders have taken on a more aggressive positions, with growing confidence that spot prices will decline further, and yield amplified profits in the days ahead.

Essentially, the chart shows that bears now have more skin in the game, and are more likely to mount additional selling pressure, to potentially trigger quick profits on their high-risk leveraged SHORT positions.

Shiba Inu Price Forecast: $0.000020 Reversal in Motion

With Shiba Inu price currently trading for $0.000025, it has now slid below the 50-day EMA support, confirming the dominant bearish sentiment. Another major downswing below the $0.000021 level could be on the cards if the LONG traders continue to close out their positions.

 

Shiba Inu Price Forecast (SHIB/USD)

However, if markets enter another downtrend as predicted, the SHIB price can find the next significant support level at the $0.000023 likely find formidable short-term support around the 100 level.

If Shiba Inu price falls below the 100-day EMA price at $0.0000231, a larger downswing towards $0.000019 could be on the cards.

This article was originally posted on FX Empire

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