Shiba Coin has been experiencing a noticeable decline in both spot and derivative markets, reflecting a broader trend of waning interest among investors. The cryptocurrency, which has seen its Average True Range (ATR) metric weaken by 77% since March, is facing one of its most challenging periods in recent months. This downturn comes amid a general decline in altcoin performance as Bitcoin‘s value hovers around $61,800.
What is the Current Status of Shiba Coin?
The decline in Shiba Coin’s spot price has coincided with a decreasing interest in its derivative markets. The meme coin, known for its volatility, has dropped over 10% in the last month, with daily trading volume plummeting to $35.4 million. This dip in volume signals a significant weakening in price momentum, indicating a lack of investor enthusiasm.
How Does Market Sentiment Affect Shiba Coin?
The reduced interest in derivative markets highlights investors’ low-risk appetite and overall disinterest in Shiba Coin. As this trend continues, the price is expected to weaken further before potentially rebounding. The SHIB volume in derivative markets has been in a consistent downtrend since reaching a yearly high of $138 million in March.
Key Insights for Investors
Here are some critical insights for investors considering Shiba Coin:
- A sharp decline in ATR suggests reduced volatility, which is generally unfavorable for meme coins.
- The funding rate indicates a slight dominance of long positions, signaling potential upward movement.
- An RSI below 30 could indicate a strong buying opportunity as the coin hits its bottom.
- A successful rebound could see SHIB attempting to breach the $0.000019 mark, with potential for higher peaks.
Future Prospects for Shiba Coin
Despite the current downtrend, there is a possibility for recovery if the Relative Strength Index (RSI) drops below 30. This scenario could prompt a price rebound, especially if Bitcoin maintains its stability around $61,800. Should Shiba Coin manage to rise, it may attempt to reach $0.000019 again, potentially marking the beginning of a bullish trend. A sustained move above this level could pave the way for testing higher peaks like $0.00003, setting the stage for a new all-time high.