Shiba Inu Price Signals 70% Rebound as Open Interest Crashes

Shiba Inu price continues its downward trend today, June 18, as the ongoing crypto market crash accelerates. SHIB, the second-biggest meme coin, has dropped by 35% from its highest point in May. It is slowly forming a rare double-bottom pattern, signaling a potential rebound as its volume and open interest falls.

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Shiba Inu Price Technicals Point to a Rebound

Shiba Inu price trades at $0.00001157, its lowest point since April 9. The daily timeframe shows that the coin has dropped below the 50-day and 100-day Exponential Moving Averages, a sign that bears have prevailed.

The Relative Strength Index (RSI) has continued its downtrend and is nearing the oversold level of 30. A falling RSI and a rising Average Directional Index (ADX) is a sign that Shiba Inu’s downtrend is gaining strength. Therefore, this pattern signals that the SHIB price may keep falling in the next few days

On the positive side, there are signs that the coin is slowly forming a double-bottom pattern whose lower side is at $0.00001030. A double bottom closely resembles a W pattern and signals that an asset has tested a support twice before rising

In addition to the two distinct bottoms, the pattern also comprises of a neckline, which in this case, is at $0.00001765. Therefore, the most likely SHIB price forecast is where it drops and retests the support at $0.00001030, and then bounces back.

If this rebound happens, the next target price to watch will be at $0.00001765, the neckline, which is about 70% above the double bottom level

![](data:image/svg+xml,%3Csvg%20xmlns=')Shiba Inu Price Chart (Source: TradingView)A drop below the double-bottom level of $0.00001030 will invalidate the bullish view. Such a crash will signal more downside, with the next point to watch being at $0.0000080

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Falling SHIB Open Interest as a Catalyst

A likely catalyst for Shiba Inu is its future open interest has slumped in the past few weeks. Data shows that it had an open interest of $134 million, its lowest level since April this year. It has been in a free fall after hitting a high of $272 million in April.

![](data:image/svg+xml,%3Csvg%20xmlns=')Shiba Inu Open Interest (Source: CoinGlass)Futures open interest refers to the total outstanding futures contracts that have not been settled, closed, or delivered. A falling figure is usually a sign of low demand among investors

However, in most cases, bullish breakouts happen when future interests slump. Similarly, a reversal happens when the open interest surges.

In line with this, SHIB price may ultimately recover since its weighted funding rate has jumped in the past few days. A positive funding rate signals that investors are optimistic that the future price will be higher than the current one

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Summary

Shiba Inu price has slumped this year, leading to a capitulation of whales and ordinary investors. His burn rate has slumped, while investors have moved to other meme coins. The most likely SHIB forecast is where it slumps and then resumes the uptrend after forming a double-bottom pattern.

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Frequently Asked Questions (FAQs)

  1. What is the most likely Shiba Inu price forecast?

The most likely Shiba Inu price forecast is where it drops, forms a double-bottom pattern, and resumes the uptrend.

  1. How low can the SHIB coin get?

Shiba Inu price will drop and test the important support level at $0.00001030, where it will form a double-bottom. A move below that level will invalidate the bullish view.

  1. Why is the Shiba Inu futures open interest falling?

Shiba Inu’s futures open interest is falling because of the falling demand among investors as it price drops.

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El contenido es solo de referencia, no una solicitud u oferta. No se proporciona asesoramiento fiscal, legal ni de inversión. Consulte el Descargo de responsabilidad para obtener más información sobre los riesgos.
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