Shiba Inu [SHIB] has had a sluggish performance this month after dropping by 11% in the last 30 days. At press time, the second-largest memecoin by market capitalization traded at $0.0000223.
SHIB's bearish performance could be attributed to a rise in selling activity amid a lack of demand. On the one-day chart, sellers remained in control as the Relative Strength Index (RSI) slopped down, forming lower lows.
SHIB's RSI stood at 40, which was close to oversold regions.
This could precede a short-term correction if selling pressure is exhausted, but if there is no fresh demand, it could lead to the price consolidating at the current range lows.
The Moving Average Convergence Divergence (MACD) indicator also showed that bearish pressure was high, with the MACD line and histogram bars being on the negative region.
Traders should watch out for uncollected liquidity at $0.0000185. If SHIB continues to consolidate due to the lack of a strong trend, the price could revisit this price level.
Conversely, if the current dip attracts buyers, SHIB could be poised for a bullish reversal that could see the price aim for the 0.5 Fibonacci level ($0.0000259), which was previously a strong support.
Flipping this level could precede an uptrend.
Shiba Inu whale activity is on the rise again, according to AMBCrypto's look at IntoTheBlock.
Volumes for large SHIB transactions exceeding $100,000 have increased from 1.07 trillion to 3.75 trillion, which represents a three-fold increase within 24 hours.
Despite this increase, SHIB's whale activity was still at range lows compared to the weekly average. This suggested that while whales were becoming active, more participation was needed to drive the price action.
Shiba Inu was showing bearish signs on the derivatives market per Coinglass. Speculative activity has dropped significantly amid an over 30% drop in derivative trading volumes.
On the other hand, Open Interest has plunged to a record low of $54M.
Shiba Inu's Long/Short Ratio also dropped to 0.926, suggesting that short traders were more than long traders. The high amount of long liquidations compared to short liquidations also showed bearish trends.
A surge in Open Interest is needed to support a bullish recovery and a breakout from consolidation.
Therefore, if the current trends in the derivatives market prevail, SHIB could be stuck in range-bound consolidation.
The broader crypto market could witness slight gains in early 2025 due to the inauguration event of US President-elect Donald Trump.
These gains could support an uptrend for SHIB that could see the price surge to multi-month highs above $0.0000334.
Conversely, if the market has already priced in this inauguration event, it could result in more bearish trends for the meme coin.
Read Shiba Inu's [SHIB] Price Prediction 2025-2026
The memecoin sector also recorded significant growth in 2024, with the total market capitalization increasing from $22 billion at the start of the year to $97 billion at press time per CoinMarketCap.
If this growth is seen again in 2025, it could bode well for SHIB's price.