Given the shift in market dynamics, Shiba Inu [SHIB] and various other cryptocurrencies experienced a downturn in prices. CryptoCrypto extensively examined the current state of the world’s second-largest meme coin to provide insights into its future price movements.
Turning Bearish: Market Sentiment Shifts
Shiba Inu faced a 7% price decline last week, and the trend continued unfavorably over the past 24 hours as indicated by the coin’s daily chart in the red. At the time of writing, SHIB was priced at $0.00001769 with a market cap exceeding $10.4 billion. The recent price correction resulted in losses for many investors.
An analysis by CryptoCrypto using IntoTheBlock’s data revealed that more than 52k Shiba Inu addresses were at a loss, representing 39% of all SHIB addresses.
Predicting Shiba Inu’s Price Trajectory
CryptoCrypto further delved into Shiba Inu’s on-chain data to offer insights into its future price trends. An examination of Santriment’s data yielded several noteworthy observations.
The social dominance of Shiba Inu remained high in the previous week, reflecting its popularity among investors and meme coin enthusiasts. However, trading activity remained subdued during this period, evident from SHIB’s tightly held supply both on and off exchanges.
Furthermore, the graph depicting SHIB’s supply held by major addresses showed a consistent trend last week. Despite reduced whale activity, significant market players retained control of 59% of SHIB’s total supply.
Using Glassnode’s data, CryptoCrypto uncovered a bearish signal – Shiba Inu’s NVT ratio was on the rise post-decline. A rising NVT ratio often indicates overvaluation and hints at an impending price correction.
However, according to CFGI.io’s data, SHIB’s fear and greed index stood at 44%, indicating a neutral market sentiment. This suggested that SHIB’s price could move in either direction.
Examining Shiba Inu’s daily chart, CryptoCrypto identified a bullish pennant pattern forming, with SHIB currently testing the pattern’s support. A successful test could propel the price towards the pattern’s resistance level.
If a breakout occurs, SHIB’s initial target may be $0.00002, with a subsequent target of $0.000025 in the short term. Conversely, a drop below the pattern could lead SHIB to levels between $0.000015 and $0.000012.