Shiba Inu (SHIB) Drops Below $0.00001250, Signalling a Crucial Breakdown of the Fibonacci Support Level. Could This Lead to a Crash?

As the crypto market faces a sudden surge in supply, the market capitalization of the meme coin segment drops to $46.97 billion.

Shiba Inu price dropped below the $0.00001250 crucial support on Wednesday, signaling a steeper correction from the 78.60% Fibonacci retracement level. As the crypto market faces a sudden surge in supply, the market capitalization of the meme coin segment dropped to $46.97 billion.

Among the crashing meme coin prices, Dogecoin witnessed a pullback of 3.89%, and Shiba Inu is down by 3.81% over the past 24 hours.

Further, with a 7-day drop of 7.12%, Shiba Inu is currently trading at a market price of $0.00001220. Will this correction phase drop the SHIB meme coin price to $0.000010 psychological support?

SHIB Price Analysis Warns Steeper Correction Ahead

The Shiba Inu price action analysis shows a bullish failure to sustain dominance above the $0.000015 psychological mark. Hitting a 7-day high at $0.00001566, the meme coin price signals a sudden downfall.

As the price action slides, the correction phase now accounts for a 20% pullback over the past five days. The downfall has breached the 78.60% Fibonacci retracement level at $0.00001232.

Credit: TradingView

The 4-hour price candle shows a minor recovery of 0.88% as a potential retest of the broken support level. With a higher price rejection, the meme coin will likely retest the previous swing low at $0.00001150.

Due to the intense pullback, the 50 and 100 EMA lines have regained negative alignment with the bearish crossover. Furthermore, the pullback prolongs the declining trend in the MACD and signal lines.

As the bearish histogram resurfaces, the momentum indicators support the possibility of an extended correction. Hence, the technical indicators apply a bearish technical viewpoint on Shiba Inu.

Shiba Inu Futures Funding Rates Flip Positive

Amid the decreasing prices of Shiba Inu, traders’ interest in Shiba Inu futures has seen a significant decline. The Open Interest is in the lower range at $120.81 million, signaling decreased trading activity.

Additionally, the Long-to-Short Ratio is gradually becoming more bearish, now standing at 0.9139, which reflects an increasing number of bearish positions.

However, the recent flip of the Open Interest-weighted Funding Rate to 0.065% indicates that traders are willing to pay a premium to maintain long positions in Shiba Inu futures. This shift could be crucial in determining the future direction of the market.

As traders are prepared to pay an average of 0.065% per eight hours to keep their long positions, it suggests an anticipation of a potential bullish reversal in the coming days.

Shiba Inu Whales Add 1.33 Trillion SHIB in 30 Days

Over the past month, despite the increased volatility in Shiba Inu’s market price, signals from blockchain analytics platform Whale Alert indicate a consistent interest from large investors, also known as whales, in accumulating Shiba Inu.

According to the recent data from the crypto tracking service, the balance of holdings between 1 trillion and 10 trillion Shiba Inu tokens has surged by 1.54%. Commencing with 153.78 trillion SHIB tokens on July 1, the total has risen to 155.11 trillion SHIB tokens.

This marks a significant surge of 1.33 trillion SHIB tokens, which is a testament to the increased support that the meme coin is receiving from major investors.

Shiba Inu Price Targets

As Shiba Inu’s price breaks below the 78.6% Fibonacci level, the downtrend is likely to test the previous swing low, which is nearly at the $0.00001150 crucial support.

From the Fibonacci levels, the next bearish extension will likely test the $0.000010 psychological mark at the 1.272 Fibonacci. This signals a significant downside risk of nearly 15%.

On a bullish note, a leverage-driven short-term recovery in Shiba Inu could retest the 61.8% Fibonacci level at $0.000012967.