The price of Shiba Inu (SHIB) has seen a significant drop of 13% in the past seven days, with futures open interest also falling by 27% since the beginning of the month. Technical indicators suggest that there may be further decline in the value of the meme coin, following a recent rally in the meme market. Despite reaching a high of $0.00003 on April 28, SHIB price has since plummeted by 33% and is currently trading at $0.00002.
The recent price drop is attributed to a decrease in demand for SHIB, as indicated by the negative Chaikin Money Flow (CMF). The CMF readings since March 23 have been negative, signaling an outflow of liquidity from the market which often precedes a fall in asset value. Furthermore, the Relative Strength Index (RSI) and Parabolic SAR indicators also support the bearish trend in SHIB.
In addition, the Elder-Ray index, which measures the strength of buyers and sellers, has been negative since April 1. Futures open interest for SHIB has also declined by 27% since the beginning of the month, according to glass coin data. These factors point towards a bearish outlook for SHIB in the near future.
Investors and traders are advised to monitor the market closely and consider their positions carefully given the current indicators suggesting a downward trend for SHIB.