Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
Shiba Inu is in the news again, but not for the reasons its owners would like. Even though SHIB has made an effort to level off around the $0.0000123 mark, the most recent delisting announcement makes it clear: the chances of a liquidity surge are slim.
Shiba Inu in battle mode
Between $0.0000120 and $0.0000130, SHIB has been battling for weeks inside a contracting triangle pattern on the price chart. There has been a decline in trading volume, indicating that neither bulls nor bears are very confident. The 200-day EMA near $0.0000139 looms overhead as resolute resistance, while the 50-day and 100-day moving averages are putting pressure on the price. The weak momentum, indicated by the RSI at 46, makes SHIB susceptible to more abrupt movements when volatility eventually returns.
However, technicalities are only one aspect of the larger picture. The delisting of 48 perpetual contracts is scheduled for Sept. 11 at 12:00 p.m. UTC by BitMEX, one of the most well-known names in derivatives trading, because of insufficient trading interest. These contracts include the Shiba Inu's perpetual pair, SHIBUSD. BitMEX explained that all trading will stop, and open orders will be canceled at the deadline, as is customary for early settlement.
Derivatives side
The implications of this delisting are significant, even though it only pertains to derivatives and not spot trading. Derivatives offer traders hedging options and leverage, frequently increasing the amount of activity and liquidity surrounding an asset. The loss of exposure on BitMEX and other platforms indicates that institutional and speculative demand for SHIB on the derivatives market is declining.
Other pairs being eliminated, in addition to SHIBUSD, are ARBUSD, ORDIUSD, XAUTUSD, ONDOUSDT, WOOUSDT, ZROUSDT, BLURUSDT, SAGAUSDT and USDTUSDC.
This news comes at a crucial time for SHIB. If there are no powerful catalysts or new momentum, the asset could retest $0.0000115 and fall below its important support levels. Traders might take the delisting as evidence that SHIB's hype cycle has petered out, if it further undermines confidence.
The conclusion is that although the delisting is just for derivatives, it represents larger problems as well, such as dwindling interest, diminishing liquidity and a community that needs new energy to stay relevant in a crowded cryptocurrency market.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team