The price of Shiba Inu (SHIB) has declined by 20% from its monthly peak, raising concerns about a possible further drop.
Shiba Inu: Entering Bear Market
The price of Shiba Inu fell by 3.65% on August 19, reaching a low of $0.00001263. This drop coincided with a downturn in the broader crypto market, where Bitcoin and many altcoins also experienced declines.
Funding Rate: Potential Risks
According to CoinGlass data, the futures funding rate has dropped to minus 0.0074%, its lowest level in months. In a negative funding rate scenario, short-sellers pay long positions, indicating expectations of a future price drop. Additional data shows that investors are offloading their SHIB tokens, with supplies on exchanges increasing. Over $1.15 million worth of tokens were moved on Monday, marking the first such instance in over two weeks.
SHIB Price Technical Analysis
The daily chart indicates that Shiba Inu's price remains below both the 50-day and 200-day exponential moving averages, a sign that bears are in control of the market. SHIB has also formed a head-and-shoulders pattern, a popular bearish reversal pattern, and if the price falls below $0.00001027, it may signal further declines.
Current data and technical analysis suggest that Shiba Inu's price is under significant selling pressure, which may lead to further declines in the near future.
