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Did SHIB Investors Escalate Shiba Inu’s Price Crash?

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Shiba Inu’s (SHIB) price is being affected by rising bearish sentiment among its investors, which is evident in their behavior.

If this skepticism intensifies further, the meme coin might find recovering from the five-month low difficult.

Shiba Inu Investors Vote for a Decline

The 22% drop in Shiba Inu’s price over the last 24 hours results from bearish investors and similar market conditions. Signs of SHIB holder’s negative sentiment became evident following the shift in funding rate.

The funding rate indicates that SHIB investors have been anticipating a decline, with their expectations aligning with the recent drop in price. Their concerns about a downturn were realized as soon as the price turned red.

Read more: How To Buy Shiba Inu (SHIB) and Everything You Need To Know

Shiba Inu Funding Rate. Source: Coinglass

The Chaikin Money Flow (CMF) further illustrates that Shiba Inu investors have been actively withdrawing their investments. This trend of significant outflows highlights growing caution or dissatisfaction among the investor base.

CMF shows that the outflows have reached a two-month high, stressing out the scale of the withdrawals. This heightened activity substantiates the notable shift in investor sentiment regarding SHIB.

Shiba Inu CMF. Source: TradingView

The increase in outflows reflects a broader trend of investors pulling back from Shiba Inu. This is potentially due to concerns about the token’s performance or broader market conditions reflected in the price.

SHIB Price Prediction: Breaching the Trend Line

Shiba Inu’s price at $0.00001105 fell below the support of $0.00001141, leaving the altcoin vulnerable to falling to the support of $0.00000898. This level has prevented further decline in the past, and SHIB could bounce back from it.

To recover and break the downtrend line, the meme coin must first turn $0.00001473 into support. Given the current challenges, this could be difficult, and SHIB might consolidate below this level.

Read more: Shiba Inu (SHIB) Price Prediction 2024/2025/2030

Shiba Inu Price Analysis. Source: TradingView

On the other hand, if SHIB investors change their stance and turn bullish again, recovery is possible. Breaching the downtrend line would invalidate the bearish thesis and help reclaim lost profits.

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.



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