Shiba Inu Price Prediction: Can SHIB Bounce Back After 10% Freefall?

Shiba Inu (SHIB), the popular meme coin, has seen a notable price retreat over the past 24 hours, dropping by nearly 10% as investors appear unimpressed by updates regarding its highly anticipated project, “Shib The Metaverse.” Despite efforts to ignite enthusiasm around the virtual world, the market response has been tepid, with SHIB holders showing little interest in the latest developments. As bearish trends emerge, questions loom about the future trajectory of the cryptocurrency.

Lackluster Response to ‘Shib The Metaverse’ Updates

Over the weekend, Shiba Inu’s marketing team shared news about “Shib The Metaverse” on X (formerly Twitter). The virtual space is designed to be a central hub for SHIB community members, encouraging collaboration, creative expression, and user-generated content. It will also serve as a platform where SHIB holders can discuss ideas, vote on proposals, and further engage with the Shiba Inu ecosystem.

However, despite the ambitious vision for the metaverse, the update has largely failed to inspire optimism among SHIB holders. The price of SHIB dropped by 7% in the immediate aftermath of the announcement, signaling that the community remains unconvinced by the project’s potential impact on the token’s value. Currently trading at $0.000018, SHIB has suffered the most significant losses among the top five meme cryptocurrencies by market capitalization in recent days.

Declining Market Participation and Open Interest

In addition to price declines, there are signs of diminishing market participation. Shiba Inu’s open interest (OI), which refers to the total number of outstanding derivative contracts such as futures and options, has seen a sharp decline. After reaching an all-time high of $116 million on September 27, SHIB’s OI has since fallen by 11%, now sitting at $103 million. This drop in OI suggests that traders are closing their positions rather than opening new ones, reflecting a reduction in market activity and growing bearish sentiment.

The decreasing open interest indicates a loss of confidence among traders, who are now less inclined to bet on a price recovery. Moreover, SHIB’s Chaikin Money Flow (CMF) indicator, which tracks the flow of capital in and out of the market, is on the verge of turning negative, signaling a potential liquidity outflow. As of now, the CMF sits at 0.05, with a downward trend that suggests an accelerating withdrawal of money from the SHIB market.

Bearish Price Prediction: Could SHIB Fall to $0.000010?

The technical indicators for Shiba Inu are painting a bearish picture, with several factors pointing to a further decline in price. SHIB recently failed to break through a crucial resistance level at $0.0000189, reinforcing the ongoing downtrend. If demand for the meme coin continues to wane, SHIB could drop to its August 5 low of $0.000010 in the coming days or weeks.

The downtrend is also being fueled by declining market sentiment, as traders appear less enthusiastic about SHIB’s future prospects. The loss of open interest and the potential for a negative CMF reading both suggest that the market is bracing for further declines.

Potential for Recovery: A Bullish Turnaround?

Despite the current bearish outlook, there is still a possibility for Shiba Inu to stage a recovery if demand picks up. If sentiment shifts in favor of SHIB, the token could rise to $0.000028, invalidating the current downtrend. A resurgence of interest in “Shib The Metaverse” or other key developments within the Shiba Inu ecosystem could provide the necessary momentum for a price rally.

For SHIB to reverse its downward trajectory, it will need to attract renewed interest from investors and traders. This could be triggered by positive news, partnerships, or further progress on its metaverse project, which may help restore confidence in the token’s long-term potential.

Conclusion

Shiba Inu’s recent price retreat reflects the broader challenges facing the meme coin, particularly as its highly anticipated “Shib The Metaverse” project failed to generate the excitement needed to drive a price rally. With declining open interest and potential liquidity outflows, the market is increasingly leaning toward a bearish outlook for SHIB. However, should demand return, there is still a path for recovery, with the possibility of a bullish reversal on the horizon. As always, investors are urged to remain cautious and conduct thorough research before making any investment decisions in the volatile cryptocurrency market