The recent sharp drop in the price of Shiba Inu (SHIB) has led to significant changes in the cryptocurrency market and shifted emphasis among investors.
Increase in Liquidations and Investor Behavior
Data indicates that the ratio of open long (bullish) positions to short (bearish) positions in SHIB futures has significantly decreased. The long-to-short ratio has dropped to 0.93, highlighting a cautious stance among investors regarding SHIB. During the recent price drop, over $1.8 million in long positions were closed, while the liquidated short positions remained below $500,000. Experts highlight that this data reflects an increased perception of risk in the current market.
Technical Factors Impacting Price
The price of SHIB has fallen by 10% since June 12, reaching $0.00001164. Despite this sharp decline, minor recovery signs have been observed in short-term charts. Certain technical indicators show that SHIB has maintained its critical support level at $0.00001100, suggesting potential reversal signs. AI-assisted analyses point to a slight recovery in the daily RSI indicator. Additionally, there is a potential positive crossover among the MACD and signal lines. If these technical signals are confirmed, the SHIB price could target the Fibonacci 23.60% level of $0.00001390.
Market Sentiment and Support Levels
The recent closing price at $0.00001170, accompanied by volume surpassing the average, indicates sustained interest from buyers. The oversold condition observed in hourly RSI data suggests a technical bounce potential. As long as the support level around $0.00001168 is maintained, a short-term market recovery might be anticipated. Some market experts emphasize the importance of maintaining current support levels. Should SHIB’s price stabilize, investor confidence could increase. Nonetheless, general market caution persists, with uncertainty influencing investor behavior.
The recent price dip in Shiba Inu (SHIB) has fostered a cautious atmosphere among investors. The rapid closure of long positions and short-term technical indicators highlight ongoing market uncertainties. Still, purchases at critical support levels and signs of technical recovery could pave the way for price stability and upward attempts.
