Shiba Inu – Can the Chainlink partnership help SHIB after its 35% fall?

• Shiba Inu strikes a Shibarium deal with Chainlink, for CCT standard adoption.
• SHIB bulls show off, undoing most of the gains achieved in November.

Shiba Inu [SHIB] and Chainlink [LINK]  have reportedly struck a deal to boost Shibarium mainnet operations. Will this development turn the tide back in favor of the bulls after the recent downside?

According to the official announcement, the collaboration allows Shibarium to adopt Chainlink’s blockchain interoperability standard, CCT. This development will enhance Shibarium’s efficiency and security, especially in DeFi.

It also shows Shibarium’s commitment to growth, potentially boosting investor sentiment. However, this development is not expected to impact Shiba Inu in the short run.

Shiba Inu extends extreme selloff

SHIB has experienced a roller-coaster of price action, with the latest wave being extremely bearish.  

At press time, it was trading at $0.00002295 after dipping by 12.84%, bringing its total weekly downside to 35.61%.

Source: TradingView

The selling pressure was intense, causing the price to dip below $0.00002737 and $0.00002289. This range, aligned with the 0.5 and 0.618 Fibonacci levels from the September to December rally, had a high probability of a bounce-back.

The strong bearish momentum could still push lower, but Shiba Inu was nearing oversold territory according to the RSI, hinting at a potential re-accumulation zone.

Coinglass reported spot outflows worth almost $10 million on the 20th of December, which at the time was the largest daily outflows in the past seven days. However, a subsequent wave of accumulation quickly turned into a $7.94 million positive netflow.

Source: Coinglass

Mid-week, selling pressure gained fresh momentum as whale outflows intensified. Large holder outflows rose from $856.14 billion SHIB on the 18th of December 18 to $2.75 trillion SHIB on the 19th of December.

There was also some whale accumulation, shown by a slight increase in large holder inflows from 1.07 trillion SHIB on the 18th of December to 1.9 trillion SHIB the next day. However, outflows were significantly higher than inflows, driving the strong bearish momentum.

source: IntoTheBlock

Large holder outflows remained higher at 8.16 trillion tokens, as opposed to 7.72 trillion in large holder inflows during the same trading session.

In the derivatives segment, Shiba Inu’s Open Interest-Weighted Funding Rates dipped into the negative in the last 24 hours but, showed signs of shifting to positive. This indicated that investors were buying the dip, which turned out accurate, as the price bounced back hours later.

Source: TradingView

Read Shiba Inu’s [SHIB] Price Prediction 2024–2025

The funding rates were back in the red on Saturday morning, suggesting that further downside could be on the cards over the weekend.