- The value of SHIB has fallen nearly 10% in the last 24 hours.
- Due to significant bearish impact, the meme asset may witness further declines.
Leading memecoin Shiba Inu (SHIB) failed to register a rally following ETF approval, with its price falling nearly 10% in the last 24 hours.
According to CoinMarketCapAt press time, the meme asset was trading at $0.000023.
SHIB, losses likely to increase further
Assessing SHIB’s price action on the 3-day chart, we found that it broke out of a symmetrical triangle in an uptrend on May 18.
However, the price of the coin peaked at $0.000026 before falling 12%.
When an asset is trading within a symmetrical triangle, its price continually reaches various lower highs and higher lows. This suggests that asset prices are consolidating within a narrow range. Buyers raise prices to meet resistance and sellers lower prices to find support.
SHIB’s upward breakout on May 18th was a rally above resistance. However, a 12% decline in value over the past two days has pushed the price back towards the bottom line of the triangle that forms the support line.
Source: TradingView
AMBCrypto’s readings of some of SHIB’s key technical indicators hinted at the possibility of a continued downtrend.
First, Memcoin’s Chaikin Money Flow (CMF) returned a negative value of -0.13 and remained in a downward trend at press time. If an asset’s CMF is negative, it signals rising liquidity exits, which are known to be a precursor to falling prices.
Lending confidence to the above position, SHIB’s Funds Flow Index (MFI) stood at 44.59, below the 50 neutral point. This indicates that market participants prefer selling the coins they own rather than accumulating new coins.
Additionally, as of press time, SHIB’s parabolic SAR indicator point is lying above the price. This indicator identifies potential trend directions and price reversals for SHIB.
Read Shiba Inu (SHIB) Price Forecast for 2024-2025
When the dotted line is above the asset price, the market is said to be in a downward trend. This indicates that asset prices have been falling and may continue to do so.
Source: TradingView
Nonetheless, SHIB futures traders continued to open long positions. SHIB’s futures funding ratio remains positive as market participants demand more long positions than short positions, according to data from Coinglass.