Shiba Inu (SHIB) price is down by 83% from its all-time highs, with the downtrend mirroring a pullback across the broader cryptocurrency market. Due to this decline, 58% of all SHIB holders are now in losses per IntoTheBlock. As losses intensify and profits shrink, is now the right time to sell Shiba Inu? Let us discuss the top 5 reasons why SHIB holders should sell their holdings.
Top 5 Reasons to Sell Shiba Inu Now as Price Crashes
Shiba Inu price trades at $0.00001471 today with a 4% gain in 24 hours. Despite these gains, SHIB still faces further downside risk. Here’s why.
SHIB Falls Below Critical Support as Double-Top Emerges
Shiba Inu price has fallen below a critical support level of $0.0000148, signaling bearish momentum. This drop also shows weak market confidence as buyers who were previously defending this support level exit their positions.
At the same time, the meme coin has formed a double-top pattern, which often precedes a steep downtrend. If SHIB breaches the neckline of this pattern, it may accelerate the downtrend, causing the meme coin to plunge to $0.00000630.
Shiba Inu Price Forms a Death Cross
Shiba Inu has also formed a death cross on its daily chart, with the 50-day Simple Moving Average (SMA) falling below the 200-day SMA. This bearish indicator shows sellers that it is time to exit their positions as the price may be on the verge of a major downtrend.
The falling on-balance volume (OBV) metric reinforces this bearish Shiba Inu price prediction as it shows fewer buyers are supporting SHIB price. If there is no shift in momentum and more capital continues to flow out of the asset, it increases the risk of further downside.
SHIB Open Interest Drops 70%
Shiba Inu’s open interest has also dropped by a staggering 70% in less than six weeks per Coinglass data. During this time, SHIB’s OI has declined from $541M to only $156M, suggesting traders are actively closing their positions.
The decline in open interest as Shiba Inu price also falls indicates that long traders are closing their positions. This shows a bearish sentiment and weak conviction in a price recovery.
Weak Market Sentiment
The crypto market fear and greed index has dropped to 10, its lowest level since 2022. This value shows traders are in a state of extreme fear, which may precede a bearish trend. As traders become fearful, demand for meme coins such as Shiba Inu also drops.
Moreover, during bear markets, crypto traders tend to abandon more speculative coins such as SHIB for high market-cap coins like Bitcoin and Ethereum. This capital rotation may not bode well for SHIB price, making it more prudent to sell now.
Demand for New Meme Coins Might Impact Shiba Inu Price
Solana meme coin launchpad PumpFun is making waves across the crypto market. New meme coins launched on PumpFun have seen parabolic gains, and traders have often rushed to these coins to book profits. This has led to liquidity being drained from older meme coins like Dogecoin and Shiba Inu.
With PumpFun’s launch of AMM liquidity pools, the meme coin frenzy on the launchpad may likely continue. This could weigh on Shiba Inu price, causing a prolonged downtrend.
Conclusion
The cryptocurrency market is facing bearish pressure and Shiba Inu has not been spared from the downturn. Shiba Inu price has dipped by 83% from its all-time highs. As market sentiment weakens and SHIB portrays a bearish technical outlook, traders might consider selling to mitigate losses.
Frequently Asked Questions (FAQs)
Shiba Inu is facing a bearish technical outlook including a double top pattern and a death cross. Reduced open interest and weak demand for meme coins also makes it the right time to sell.
Shiba Inu’s death cross and weak buying momentum suggests there is still risk for further downside and the price may not recover in the near-term unless the market sentiment shifts.
Shiba Inu price can drop to $0.00000630 if it breaches the neckline of the double top pattern.
muthoni
Muthoni Mary is a seasoned crypto market analyst and writer with over three years of experience dissecting blockchain trends, price movements, and market dynamics. With a sharp eye for technical analysis and an in-depth understanding of on-chain metrics, she delivers insightful, data-driven content that helps investors navigate the fast-paced world of digital assets.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/shiba-inu-price-top-5-reasons-to-sell-shib-now/
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