Shiba Coin interest declines in spot and derivative markets.
Average True Range metric for SHIB weakens by 77% since March.
Potential for SHIB price rebound if RSI drops below 30.
The leading cryptocurrency fell to $61,800, and the recent drop is not good for altcoins. JOLTS data met expectations. Volatility is likely to continue based on data coming on Friday. So, what is expected specifically for Shiba Coin? What awaits investors?
Shiba Coin (SHIB)
The decline in spot price has also led to a decrease in interest in Shiba Coin in derivative markets. The second-largest meme coin, which fell by over 10% last month, is experiencing its worst day since February with a daily volume of $35.4 million. The drop in volume reflects weakness in the price as well.
The lack of interest in derivative markets indicates that investors’ interest in the altcoin is weak and their risk appetite is low. As disinterest continues, the price is expected to weaken further, and once it bottoms out, the SHIB price should start to rise. The SHIB volume in derivative markets has been continuously declining since it hit a yearly record of $138 million on March 6.
The Average True Range (ATR) reflects the drop in volatility, and this metric for SHIB has weakened by 77% compared to March. This weakening is particularly bad for meme coins. Lastly, since the funding rate is positive, we can say that a small number of derivative investors are balanced between short and long positions, with the long side being slightly dominant.
Shiba Coin Price Prediction
Although weak, the higher number of long positions could be a signal for a rise. However, the RSI also indicates that the decline for SHIB might continue. While BTC is hovering at $61,800, SHIB’s Relative Strength Index (RSI) is at 33. The RSI in the oversold region is in a downtrend. We will likely see a scenario where the RSI drops below 30, and during this time, Shiba Coin’s price hits the bottom. BTC’s trend also confirms this.
So, what if SHIB starts to rise? A new attempt at $0.000019 is expected, and closes above this level could signal a return to a bull trend. In this scenario, higher peaks like $0.00003 could be tested again, creating the environment for a new all-time high.
