Shiba Inu price slips again: is SHIB heading back to its yearly low?

Shiba Inu SHIB remained under pressure on Tuesday, extending its decline for a fourth consecutive trading session as weakening investor sentiment and bearish derivatives positioning weighed on the meme coin.

The token slipped below $0.0000042, with on-chain metrics, futures market data, and broader market uncertainty pointing to the possibility of further downside.

Investor interest in SHIB continues to fade

On-chain data suggests enthusiasm for Shiba Inu has cooled significantly in recent days.

According to blockchain analytics platform Santiment, SHIB's Social Dominance metric—which measures the share of discussions related to the token across cryptocurrency media and social platforms—has dropped sharply since reaching a local peak on July 12.

The indicator has fallen to 0.014%, approaching levels last seen in early July.

The decline suggests that SHIB is attracting less attention from traders and investors, a trend that often coincides with weakening market momentum.

Lower social engagement can reduce buying interest, making it more difficult for the token to sustain price recoveries.

Futures market data also points to increasing bearish sentiment. According to CoinGlass, SHIB's long-to-short ratio stands at 0.90, close to its lowest level in more than a month. 

A ratio below 1 indicates that more traders are opening short positions than long positions, reflecting expectations of further price declines.

At the same time, SHIB's funding rate remains negative at -0.0136%, meaning short sellers are paying long-position holders to maintain their trades. 

Negative funding rates are generally viewed as a sign that bearish positioning dominates the perpetual futures market.

Together, these metrics suggest traders continue to expect additional downside in the near term.

Beyond crypto-specific indicators, broader macroeconomic conditions are also weighing on market sentiment.

Escalating tensions between the United States and Iran have prompted investors to reduce exposure to speculative assets, including meme coins.

As one of the cryptocurrency market's most volatile assets, Shiba Inu tends to experience larger price swings during periods of heightened uncertainty, making it particularly vulnerable when risk appetite weakens.

Shiba Inu technical analysis: Bears eye key support

The SHIB/USD 4-hour chart remains bearish as Shiba Inu is in a clear short-term downtrend after failing to break above a descending trendline that has capped price rallies since mid-May.

The token has fallen more than 5% over the past three trading sessions and now risks revisiting its yearly low near $0.0000040 if selling pressure continues.

The Relative Strength Index (RSI) has dropped to 33, approaching oversold territory and indicating that bearish momentum remains strong.

Meanwhile, the Moving Average Convergence Divergence (MACD) indicator is on the verge of forming a bearish crossover, a technical signal that could reinforce the ongoing downtrend.

If the current correction continues, immediate support is located around $0.0000040, which marks the token's yearly low.

On the upside, any recovery would first need to reclaim the descending trendline near $0.0000044. 

A decisive move above that resistance could improve short-term sentiment, although buyers would likely need stronger trading volume to confirm a trend reversal.

Shiba Inu remains under significant bearish pressure as declining social activity, negative derivatives data, and cautious investor sentiment continue to weigh on the meme coin. 

While oversold technical conditions could eventually trigger a short-term rebound, SHIB's near-term outlook remains weak unless buyers can reclaim key resistance levels and broader market sentiment improves.