Shiba Inu (SHIB) Price Faces Bearish Sentiment Despite Increased Futures Interest

On Monday during U.S trading hours, the cryptocurrency market witnessed a quick spike in supply pressure, reflected in Bitcoin's sudden reversal from $70000.

As the U.S trading hours commenced on Monday, the cryptocurrency market experienced a rapid surge in supply pressure, which was evident in Bitcoin’s abrupt U-turn from the $70000 mark. The selling momentum quickly extended to the meme cryptocurrency sectors owing to their inherent volatility, which has been hampering their consolidation since last week. The Shiba Inu coin experienced a 0.3% decrease today, and a high wick rejection at a major resistance level suggests the possibility of a downswing.

Shiba Inu Price Encounters Bearish Sentiment Despite Heightened Futures Interest

Over the past two weeks, the dog-themed memecoin Shiba Inu has underperformed in the broader market recovery. From the peak of $0.00002 on July 16th, the SHIB price has dropped by 16.8%, currently trading at $0.0000167. Meanwhile, the market capitalization has decreased to $9.89 Billion.

The presence of Shiba Inu price below the daily EMAs (20, 50, 100, and 200) indicates that the path of least resistance is downward. Furthermore, the momentum indicator RSI at 43.7% depicts a bearish to neutral market sentiment.

This downtrend can be attributed to the overhead supply pressure emanating from the resistance trendline of the falling wedge pattern. Since March 2024, the SHIB price has been trending down within the converging trend lines of the pattern.

Notably, this setup indicates the maturity of a downtrend and the potential for a significant traversal.

According to data from Coinglass, Shiba Inu futures open interest experienced a substantial increase in July. The open interest (OI) value rose from $27.79 million to $38.86 million, marking an increment of approximately 39.83%.

This substantial growth in open interest indicates heightened trading interest, which could be a precursor to increased price volatility or sustained price movements.

Moreover, Shiba Inu’s layer-2 blockchain Shibarium has hit a significant milestone by processing over 6 million blocks in less than a year since its launch. This achievement highlights the platform’s high activity and growing adoption, indicating strong user engagement.

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