Shiba Inu (SHIB) Drops 62% as Bearish Sentiment Grips Crypto Market

The current funding rates displayed by mainstream centralized exchanges (CEX) and decentralized exchanges (DEX) indicate that the cryptocurrency market is still in a bearish trend. This sentiment is reflected in the funding rates, which are mechanisms used by exchanges to maintain the balance between contract prices and underlying asset prices, particularly for perpetual contracts. When the funding rate is below 0.005%, it signals a generally bearish market.

Bitcoin, the leading cryptocurrency, experienced a significant drop to $76,606 earlier today before rebounding to $80,415. This volatility underscores the bearish sentiment prevalent in the market. The funding rates for mainstream coins further support this bearish outlook, as they remain below the baseline rate of 0.01%. This indicates that the market is currently dominated by short positions, with traders expecting further declines in cryptocurrency prices.

The bearish trend is particularly evident in the meme coin market, with Shiba Inu (SHIB) facing intense selling pressure. SHIB, once considered one of the most promising meme coins, has lost momentum and is currently trading at $0.00001215. The price of SHIB has been in a steady decline since peaking at $0.000032, with technical indicators suggesting a strong bearish cycle. The daily chart shows consecutive lower highs and lower lows, indicating that buyers are not stepping in with enough volume to counter the selling pressure.

Technical analysis reveals that SHIB's Relative Strength Index (RSI) is currently at 28.20, entering oversold territory (below 30). This suggests that selling pressure is extreme, and a possible relief rally could be near. Historically, whenever SHIB's RSI dipped below 30, a short-term bounce followed. However, these rebounds have been weak and failed to sustain an uptrend. The Moving Average Convergence Divergence (MACD) indicator also confirms the bearish momentum, as SHIB's MACD is currently in negative territory with no signs of a bullish crossover.

Shiba Inu is now at a critical juncture, with key support zones being tested. The next support level for SHIB is at $0.00001200. If this level is breached, it could signal further declines