2023-4-20 20:30 |
Shiba Inu price crashed 8% since hovering near $0.000012 on April 16. The recent crypto industry-wide correction appears to spread across the Shiba Inu ecosystem. Can the demand zone at $0.000010 stop the bears?
Shib Inu (SHIB) could soon experience an impending downswing. On-chain data suggests that SHIB holders are gearing up for more sell action in the coming days.
SHIB Holders Are Approaching Critical Profit-Taking TerritoryThe 30-day Market Value to Realized Value (MVRV) ratio for SHIB, which evaluates holders’ short-term profit or loss, is currently nearing a potential sell-zone. With most holders sitting on 6.87% profits, the MVRV ratio is approaching a high-risk territory.
Shiba Inu (SHIB) Price vs. MVRV ratio April 2023, Source: SantimentLooking back at February 15, the 7% profit zone has previously culminated in a local top formation for SHIB. If the pattern repeats, crypto investors can expect SHIB price to decline in the coming days.
Similarly, the slowdown in the new-user acquisition rate on the Shiba Inu Network is another major cause of bearish concerns.
According to the data provided by Santiment, there has been a 41% decline in the Shiba Inu Network Growth since the beginning of March. From 2,473 addresses recorded on March 1, the number of new wallets has declined to 1,473 as of April 19.
Shiba Inu (SHIB) Price vs. Network Growth April 2023, Source: SantimentSlowing Network Growth often implies that the Shiba Inu ecosystem could be losing market share to other meme coins. And if the trend continues, SHIB may struggle to find new demand to propel the price out of the impending downside.
Shiba Inu Price Prediction: Strong Support at $0.000009IntoTheBlock’s Break-Even price distribution provides data-driven intel suggesting that SHIB will likely lose its current support at $0.000011. Although, the 38,000 addresses that purchased 77 trillion SHIB coins in that zone could put up a fight.
But, if the bearish scenario plays out, then SHIB holders can expect a price drop toward $0.000009. Here, 343,000 addresses holding 150 trillion SHIB can stop the slump
Shiba Inu (SHIB) Break-Even Price Distribution. April 2023, Source: IntoTheBlockStill, the bulls may invalidate the bearish market sentiment if SHIB rice can scale the $0.000012 resistance zone. But as observed above, the 38,000 addresses holding 77 trillion tokens will likely slow down the bullish momentum.
But if it manages to breach that resistance zone, Shiba Inu could continue the rally toward $0.000017.
The post Shiba Inu (SHIB) Price Momentum Turns Bearish, What to Expect Next? appeared first on BeInCrypto.
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