The price of leading meme coin Shiba Inu ( SHIB ) has fallen 18% in the past 24 hours. This reflects the downturn in the entire cryptocurrency market, with the global market value falling 5% in the same period.

An assessment of the meme coin’s on-chain and technical setup shows that bullish momentum is waning, with bearish sentiment increasingly dominant. This suggests that SHIB could extend this downward trend. Here are the specific reasons why.

Shiba Inu loses its bull


The decline in Shiba Inu’s open interest (OI) confirms the reduction in market activity and waning bullish enthusiasm among meme coin holders. As of writing, the contract is at $82.49 million, down 32% in the past 24 hours.

OI refers to the total number of active contracts in the futures or options market that have not yet settled, expired, or closed out. When this number decreases, it is a bearish signal. It indicates that traders are closing their positions, either because they believe the asset will continue to fall in value or because they want to limit their losses.

The situation of SHIB shows that the number of open interests has declined amid the price decline, indicating strong bearish sentiment among market participants.

Additionally, the meme coin’s average investment dollar age (MDIA) has been steadily declining since November 9, confirming rising selling pressure in the market. As of this writing, SHIB’s average investment dollar age is 877, down 1.5% over the past four days.


MDIA tracks the average age of a currency based on its USD value. It measures how long, on average, a dollar invested in cryptocurrency has sat idle in its current wallet address. A higher MDIA indicates that investors are holding onto the currency for a longer period of time, while a lower MDIA means there has been a recent inflow or outflow of capital.

When an asset's MDIA falls, it indicates that older currencies are being moved, indicating increased trading activity. When this happens during a price decline, it indicates profit taking or stop loss.

This indicates a change in market sentiment, with investors showing a greater willingness to sell. This selling activity exacerbates the bearish trend as selling pressure outweighs buying pressure.

SHIB Price Prediction: Key Targets to Watch

As of this writing, Shiba Inu is trading at $0.000023. The double-digit drop in the past 24 hours has caused its price to fall towards the 20-day exponential moving average (EMA), which tracks the average price over the past 20 trading days.

The 20-day EMA acts as a dynamic support during an uptrend. A drop towards this level means a decrease in buying pressure.

However, it provides a support level where price corrections or pullbacks usually trigger buying interest. For Shiba Inu, its 20-day EMA forms support at $0.000020.

If the price breaks below the 20-day EMA, it will indicate a shift in momentum as the meme coin no longer finds support at this level. Such a decline will attract further selling as traders consider it as a bearish signal, prompting them to exit or go short. If the $0.000020 price level fails to hold as support, SHIB price will continue to fall to $0.000016.

However, if the 20-day EMA provides support, the price of SHIB is likely to resume the uptrend and attempt to reclaim $0.000028.