Shiba Inu Price Forecast: What Next For SHIB after 27% Dip in 10-Days?

Shiba Inu price sank toward $0.000020 on Thursday May 2, reflecting a 26% free fall in the last 10 days, with trading volume trends suggesting more downside ahead.

Shiba Inu Records 25% Freefall in 10-days

Shiba Inu has dominated media headlines in April for various bullish events, ranging from a $12 million fundraise for critical network development to the 1.7 billion token burns during the month. But curiously, the SHIB token’s short-term price action has not benefitted demonstrably from these events’ positive tailwinds.

After the buzz generated by the ecosystem team’s $12 million fundraise in last month, Shiba Inu price failed to sustain the uptrend. Since April 23, SHIB price has been in a 26.74% free fall, dropping as low as $0.000020 on May 1.

Shiba Inu Trading Volume Surges $127 million Amid 27% Price Dip

At press time on May 2, SHIB is exchanging hands for $0.000023 per token, having staged a mild 2% recovery within the daily timeframe. However, vital market trends suggest that the bulls are unlikely to maintain the upward trajectory in the near-term.

Shiba Inu’s trading volume trends illustrated in the Santiment chart below tracks the dollar value of all SHIB transactions executed on a given day.

On April 28, Shiba Inu recorded a $44.1 million trading volume, its lowest in 70 days, dating back to Feb 25. But, on a more worrying note, the latest data shows SHIB trading volume hit $171.2 million on May 1, which represents a $127 million surge from the 70-day low recorded last week.

Typically, a surge in trading volume is often attributed to increased demand and market participation. But in rare cases, when the trading volume surge coincides with a rapid price downsizing as observed in SHIB chart above, strategic investors consider it a bearish signal for two main reasons.

First, it suggests that the increased trading activity may be driven by panic selling or profit-taking, rather than genuine buying interest. Secondly, the negative divergence between trading volume and price movement may indicate a lack of sustainable support for the asset’s price, potentially leading to further downward pressure in the short term.

SHIB Price Forecast: $0.000020 Support Now at Risk

Shiba Inu’s 26% price dip in the last 10 days has coincided with a $127 million surge in trading volume. This rare market signal suggests SHIB price could be at risk of losing the critical $0.000020 support in the near term.

The Bollinger bands indicator further affirms this bearish Shiba Inu price forecast. It shows that despite the mild 1.34% daily rebound on May 2, SHIB is still trading below the 20-day SMA price, signaling that the bears are still firmly in control of the short-term market trend.

Within the current dynamics, the bears could stage a major price breakdown towards $0.000015 if SHIB fails to hold the key support territory of $0.0000204 as depicted by the lower-limit Bollinger band.

On the flip side, in the event of a positive swing in market momentum, Shiba Inu bulls must scale the $0.000028 resistance level to regain the driving seat.