Shiba Inu (SHIB) Poised for a Notable Price Decline as It Forms a Bearish Price Action Pattern

Amid the confusing market sentiment, Shiba Inu (SHIB), the popular meme coin is poised for a notable price decline as it has formed a bearish price action pattern on its daily chart.

Shiba Inu (SHIB) price analysis reveals a bearish outlook with a potential for a significant price decline. This follows the formation of a bearish price action pattern on its daily chart, indicating a shift in market sentiment toward a downtrend.

The broader cryptocurrency market also seems to be leaning toward a bearish trend, with Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) prices all facing a decline.

Shiba Inu Technical Analysis: Bearish Price Action Pattern

As highlighted by CoinPedia's technical analysis, SHIB's price action on the daily time frame appears bearish. The meme coin has broken down from a symmetrical triangle price action pattern, which is typically followed by a strong move in the direction of the breakout.

In this case, the breakdown from this pattern indicates a potential downtrend for SHIB. However, this bearish thesis will only be valid if SHIB closes a daily candle below the 200 EMA (Exponential Moving Average) or the $0.000017 level. If this condition is not met, the bearish outlook may fail.

Shiba Inu On-Chain Analysis: Open Interest Drops, Majority of Top Traders in Short Positions

The on-chain metrics for SHIB show that the open interest has decreased by 7.67% over the last 24 hours, indicating an increase in the liquidation of long positions as the price continues to decline.

According to the data, 53.5% of the top traders are currently in short positions, while 47.5% are in long positions. This suggests that a majority of the top traders anticipate a further decrease in SHIB's price.

Shiba Inu Price Action Today: Key Levels to Watch

At the time of writing, SHIB's price is around $0.0000173, showing a decrease of over 3.8% in the last 24 hours. The meme coin has experienced a price decline from yesterday's high of $0.000018.

Meanwhile, SHIB's trading volume has increased by 5% over the last 24 hours, indicating a rise in participation from traders and investors compared to the previous day.

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