SHIB Price Faces Pressure With Derivatives Bearish Tone

• Shiba Inu (SHIB) risks downside as 142 trillion tokens await burning, with bearish signs in derivatives trading.
• SHIB’s support at $0.0000181 is crucial, but bearish MACD signals suggest potential weakening in buying momentum.
• Despite bearish trends, 53% of SHIB holders remain in profit, reflecting solid long-term investor interest.

Shiba Inu (SHIB) is facing a critical test as its price hovers around $0.000018, a crucial support level. Looming over this is the fact that a massive 142 trillion SHIB tokens remain to be burned. 

This substantial unburned supply poses a significant risk to the token’s price stability, despite a minor 0.01% gain in the last 24 hours. This analysis will explore the bearish signals emerging from SHIB’s derivatives market, key support levels, technical indicators, and holder distribution, all while considering the potential impact of the unburned token supply. It will also examine price forecasts for 2024 and beyond.

Bearish Sentiment in SHIB Derivatives

The Shiba Inu derivatives market is showing signs of bearish sentiment. Trading activity has dropped, with volume falling by 9.09% to $126.22 million. Open interest has also declined by 1.65% to $54.48 million, indicating growing caution among traders.

Read also: Shiba Inu (SHIB) Poised for a Parabolic Move: Key Insights and Price Levels

The long/short ratio currently stands at 0.9186, suggesting a higher number of short positions. However, a bullish ratio of 3.21 on OKX offers a contrasting perspective, hinting at potential positive sentiment on that platform.

Data from major exchanges like Binance and Bybit show that long traders experienced $1.02 million in liquidations. Of this, $945.91K came from long positions, forcing many traders betting on price increases to close their positions. These trends signal caution as traders take profits during uncertain market conditions.

Key Support Levels and Technical Indicators for SHIB

The $0.0000181 level has acted as a crucial support zone for SHIB, with the token repeatedly bouncing back from this area. This suggests strong buying interest at this level. During sharp declines, the price briefly touched $0.0000180 before recovering, establishing it as a secondary support level. However, if SHIB consistently closes below these levels, further downside risk may emerge, especially given the pressure from the large number of unburned tokens.

Currently, the Relative Strength Index (RSI) for SHIB is at 55.15, indicating neutral momentum. The absence of overbought or oversold conditions suggests the price could move in either direction. A slight dip below the average line indicates a potential slowdown in buying pressure.

The Moving Average Convergence Divergence (MACD) is also giving bearish signals. The MACD line is below the signal line, and the histogram shows declining green bars. This trend suggests weakening bullish momentum, and unless a crossover occurs soon, the bearish pressure could increase.

Shiba Inu Holders and Large Transactions: A Mixed Picture

Despite the bearish sentiment, Shiba Inu maintains a market cap of $10.82 billion. Furthermore, 53% of holders remain in profit, reflecting continued long-term interest. Data also reveals that 79% of SHIB investors have held their tokens for over a year, signifying strong holding behavior. However, 73% of the total supply is concentrated among large holders, which could lead to price volatility.

Over the past week, SHIB registered $306 million in large transactions. While this indicates active trading, a slight dip in Telegram community members may hint at declining engagement. The token’s moderate 0.58 correlation with Bitcoin suggests SHIB’s price might also be influenced by Bitcoin’s movements.

Price Forecast for 2024 and Beyond

Changellyblog experts predict that SHIB might reach a maximum of $0.0000187 in December 2024, with a potential drop to $0.0000152. On average, SHIB could trade around $0.0000170 by the end of the year. Looking further ahead, forecasts for 2025 suggest a price range between $0.0000151 and $0.0000216, with an average trading price of $0.0000180 if current trends continue. However, these predictions may need to be revised if the unburned token supply continues to weigh on the price.