Shiba Inu (SHIB) Under Pressure: Analysis and Factors Causing the Bearish Trend (2/28/25)

Jakarta, Pintu News – Shiba Inu , one of the popular meme coins in the cryptocurrency market, has experienced a significant price drop, reaching 83% of its all-time high. This decline reflects the overall bearish trend in the crypto market. Given this, many investors are wondering if now is the right time to sell SHIB or hold on to it. Here are some of the key factors that could affect the price of SHIB going forward.

SHIB Price Falls Below Critical Support

Currently, the price of SHIB is trading at $0.00001471 (IDR0.24) after having risen 4% in the last 24 hours. However, technically, SHIB has fallen below the crucial support level at $0.0000148 (IDR0.24), which suggests bearish momentum still dominates the market.

In addition, SHIB also formed a double-top pattern, which often signals further downside potential. If the price breaks the neckline of this pattern, SHIB has the potential to decline to $0.00000630 (€0.10), further worsening the market sentiment.

Also Read: Cardano (ADA) Price Prediction by Alex Becker: Upside Potential or Excessive Speculation?

Technical Indicators Show Bearish Signals

In technical analysis, a death cross occurs when the 50-day simple moving average (SMA) falls below the 200-day SMA. Currently, the daily chart of SHIB shows a death cross formation, which is often a strong signal that a bearish trend is underway.

In addition, the On-Balance Volume (OBV) indicator is showing a decline, signaling that fewer buyers are supporting SHIB prices. If this trend continues and capital continues to flow out of the asset, then selling pressure will intensify, increasing the risk of further declines.

A 70% Drop in Open Interest

Data from Coinglass shows that SHIB’s open interest (OI) has dropped 70% in less than six weeks, from $541 million (IDR 8.83 trillion) to just $156 million (IDR 2.55 trillion). This significant drop in OI signals that many traders are closing their positions, reflecting bearish sentiment and a lack of confidence in a price recovery in the near future.

When open interest decreases along with the price of the asset, it indicates that long-term traders prefer to exit the market rather than maintain their positions.

Weakening Crypto Market Sentiment

The Fear and Greed Index for the cryptocurrency market is currently at 10, indicating extreme fear. This negative sentiment could exacerbate the decline in SHIB prices as many investors tend to avoid speculative assets such as meme coins in favor of assets with larger market capitalizations such as Bitcoin and Ethereum .

Under bearish market conditions, capital rotation from high-risk assets to more stable assets often occurs. This may make SHIBs lose their appeal in the eyes of investors and further pressure the price downwards.

Emergence of New Coin Memes Threatens SHIB’s Popularity

One of the other factors that could negatively impact the price of SHIB is the emergence of new meme coins that attract more investor attention. Currently, Solana’s PumpFun platform has been in the spotlight in the crypto market with the launch of various meme coins that have experienced significant price spikes in a short period of time.

The popularity of these platforms may divert liquidity from older tokens like SHIB to newer tokens that have higher profit potential. As more investors shift to new projects, demand for SHIB could further decline, extending the current bearish trend.

Conclusion

Shiba Inu (SHIB) is currently facing major challenges in the cryptocurrency market. With a strong bearish trend, technical indicators pointing to further declines, as well as capital rotation into other assets, investors need to reconsider their strategies.

Although SHIB prices have dropped significantly from their peak, there is still potential for further declines if market conditions do not improve. Therefore, investors need to be cautious and consider all factors before making any decisions regarding their SHIB holdings.

Also Read: Bitcoin (BTC) Trend Not Over? CryptoQuant CEO Analyzes!

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Trading crypto carries high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying and selling Bitcoin and other crypto asset investments are the responsibility of the reader.

Reference:

• Muthoni Mary / Coingape. Shiba Inu Price: Top 5 Reasons to Sell SHIB Now. Accessed February 28, 2025.
• Featured Image: Crypto Daily