Shiba Inu (SHIB) Price Momentum Screeches To A Halt: What’s The Outlook?
April 20 2023 - 9:42AM
NEWSBTC
Shiba Inu (SHIB) investors have been hit hard by the recent
industry-wide crypto correction, with the token’s price momentum
turning bearish. As the value of many cryptocurrencies took a dive,
Shiba Inu followed suit, causing many to wonder what the next few
weeks hold for this meme coin. Despite the negative trend, some
traders remain hopeful that the demand zone could provide support
and turn the tide. Related Reading: OKB Tallies 24% Increase But
Active Addresses Fail To Keep Pace – Here’s Why On-Chain Data
Signals Possible Downswing Amid the broader correction in the
crypto market, Shiba Inu’s price has also taken a hit. According to
CoinMarketCap, SHIB’s value is currently sitting at $0.00001091,
with a 24-hour decrease of 0.62% and a 7-day decrease of 1.67%. The
Shiba Inu ecosystem may face further downside as on-chain data
reveals that SHIB holders are preparing to sell in the coming days.
Data shows a significant decrease of 41% in Shiba Inu Network
Growth since March 1, with new wallet addresses falling from 2,473
to 1,473 as of April 20. This reduction in network growth
could indicate a loss of market share to other meme coins, and if
the trend persists, SHIB’s price may struggle to find new buyers,
leading to a potential price decline. Potential Price Movements For
SHIB Based on data from IntoTheBlock’s Break-Even price
distribution, Shiba Inu’s current support at $0.000011 is likely to
be lost. However, the 38,000 addresses that bought 77 trillion SHIB
coins in that zone may put up a strong resistance to the impending
downward trend. If the bearish scenario materializes, the price of
SHIB is expected to drop to $0.000009, where the 343,000 addresses
holding 150 trillion SHIB may help to prevent further decline. On
the other hand, if SHIB manages to overcome the bearish trend and
break the $0.000012 resistance zone, it could continue its rally
toward $0.000017. However, the 38,000 addresses holding 77
trillion tokens are likely to hinder the bullish momentum. Shiba
Inu: More Bearish Signals On-chain data suggests that the
cryptocurrency may be headed for a bearish trend. The 30-day Market
Value to Realized Value (MVRV) ratio, which measures holders’
short-term profit or loss, is nearing a potential sell-zone as most
holders currently sit on 6.87% profits. This puts the MVRV ratio in
a high-risk territory that could signal a potential price drop.
SHIB market cap at $6.4 billion on the daily chart at
TradingView.com Related Reading: Cardano Racks Up Nearly 4% Gain
Amid Short-Term Losses – Will Investors Hold Firm? Adding to the
bearish sentiment is the slowdown in new-user acquisition rate on
the Shiba Inu Network, which raises concerns about the
cryptocurrency’s market share in comparison to other meme coins.
SHIB’s short-term outlook appears to be bearish, with potential
downside risks looming in the near future. Investors should closely
monitor the MVRV ratio and new-user acquisition rate for any
further signs of a price drop. -Featured image from iHeartDogs
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