Shiba Inu (SHIB) has recently experienced a significant drop, falling below the key support zone at around US$0.000024, leading to new predictions about its price.

The price decline has been marked by consistent selling pressure, despite a recorded outflow of tokens from exchanges, which could potentially indicate a chance for price stabilization or even a rally.

However, the bearish momentum has persisted, signaling deeper uncertainty among investors.

Latest SHIB Prediction

One contributing factor to this downward trend is the liquidation of long positions. Traders who bet on SHIB's price increase are facing losses, leading to the liquidation of their positions, thus accelerating the recent price decline.

According to AMB Crypto's report, this situation illustrates the fluctuating nature of crypto investments, where quick shifts can have significant financial consequences for traders.

In a broader context, the formation of a trading range for SHIB seems possible. However, its dependence on Bitcoin's performance is quite apparent.

If Bitcoin drops below US$59,000, it could trigger further retracement in SHIB's price to lower support levels, as outlined by Fibonacci retracement analysis.

The potential fall to the next Fibonacci support point emphasizes the interconnected nature of the crypto market, where large assets often influence the broader market dynamics.

Technical Indicators and Bearish Momentum

Technical analysis, particularly based on the RSI indicator on the 12-hour chart for SHIB, stands at 33, indicating a strong bearish momentum. This level is just above the oversold threshold of 30, suggesting that SHIB is approaching a point where it could be considered undervalued.

However, reaching oversold conditions does not guarantee a recovery, as market sentiment and external economic factors play a crucial role in determining price movements.

Short-Term Prospects and Open Interest Data

The current price trajectory of Bitcoin and overall market sentiment are crucial in predicting SHIB's future price movements. If the market continues to show weakness, SHIB could potentially see a further decline of around 19 percent.

Fibonacci retracement levels, marked in pale yellow on the chart, highlight the next potential support point at US$0.0000172, providing a technical basis for this prediction.

Historically, in mid-April, the level of US$0.0000212 served as support for SHIB's price. There is a possibility of a rebound if this level is retested, indicating some resilience in SHIB's price amid a bearish trend.

Despite the price decline throughout April, the On-Balance Volume (OBV) indicator shows that selling pressure is not too high, indicating that investor interest in SHIB remains.

This data is significant because it suggests that as long as OBV does not drop below the current support level, there is hope for SHIB bulls that the token can recover.

This recovery is likely to come from the previously highlighted support, indicating a critical point where traders may see opportunities to enter the market.