What should long SHIB dealers be worried about in the next 24 hours?
Of all the coin memes on the market, SHIB has received the most attention so far thanks to its 1200% surge in October, but after that the price collapsed just as quickly, losing almost 50% of its value.
Although SHIB rebounded along with other altcoins (up 20%) on Friday, it has declined 6% in the past 24 hours, suggesting a slim chance of regaining previous highs.
4-Hour SHIB Price Chart | Source: Tradingview
Obstacles on the way of SHIB
The sentiment of the SHIB dealer is now viewed as pessimistic. Hence, as a green candle continues to establish itself on the short-term chart, the price is expected to face many challenges in the near future.
At the time of the analysis, the curve of the financing rates on most exchanges is pointing south. Usually a positive funding rate brings optimism to traders, while a negative funding rate represents a generally pessimistic sentiment.
Psychology often plays an important role in driving a trend further. However, considering how things have been going for SHIB lately, it seems unlikely that this altcoin can continue its long-term uptrend.
story Funding rate SHIB | The source: CoinGlass
SHIB’s OI (Open Interest) curve is also sloping down at the time of going to press. A high open interest generally corresponds to the speculative interest of derivatives traders. At the same time, it also suggests that money is flowing into the ecosystem.
Looking at the current scarcity, it can be concluded that derivatives traders are hardly interested in this coin.
Open interest in SHIB futures | The source: CoinGlass
Additionally, long liquidations outperformed short liquidations on November 20 by more than $ 389.8,000. This usually means that the market prefers the short trader rather than the long trader.
In fact, the long-short spread shows that the majority of traders are going bearish, with a significant number of short positions exceeding long positions.
Total liquidation | The source: CoinGlass
Even on the price chart, SHIB is trading below the moving averages at the time of going to press. The price is between major support and resistance levels. With trader sentiment dominating, it seems more likely that SHIB will slide towards $ 0.00004193 in the next 24 hours than a break above $ 0.0005686.
Hence, long traders need to be careful with the psychology of short traders before going long at this point.
SHIB / USDT | The source: TradingView
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