Like other cryptocurrencies in the market, the price of Shiba Inu (SHIB) has seen a double-digit percentage drop in the past 24 hours. This price drop can be linked to the increasing bear dominance of SHIB, as bulls appear to have retreated.
Under such circumstances, it may be difficult for the price of SHIB to register a significant increase. Other factors may contribute to accelerating the decline.
Shiba Inu Sell Pressure High, Network Activity Low
Two days ago, SHIB was priced at $0.000024. At the time of writing, the meme coin has dropped to $0.000019, in line with the broader market sentiment, which has seen Bitcoin (BTC) and other altcoins fall.
According to this analysis, the cryptocurrency is likely to continue to decline. An indicator that indicates this bias is the Bulls and Bears indicator. This indicator tracks the activity of addresses that bought (bulls) and sold (sellers) 1% of the total trading volume.
When the number of bulls is higher, the price of SHIB may face significant upward pressure. At the time of writing, the number of bears on SHIB has increased, indicating that the meme coin’s value may drop below $0.000019 in the short term.
Furthermore, network activity is another key indicator that points to a possible further decline in the Shiba Inu price. On-chain data from Santiment reveals a significant drop in active addresses associated with the token.
Active addresses measure the number of unique wallets interacting with cryptocurrency over a given period. When this metric rises, it indicates increased engagement, as more wallets participate in transactions involving cryptocurrency.
Conversely, a decrease in active addresses, as is the case with SHIB, indicates less engagement with the token, indicating a decrease in successful transactions on the blockchain. This decreased activity may reflect declining interest or demand, supporting the possibility of a near-term decline in SHIB’s value.
SHIB Price Prediction: Token Continues to Fall
The last time Shiba Inu price tried to trade higher was on December 11. At that time, the token was worth $0.000029. On the 4-hour chart, the Relative Strength Index (RSI) reading is 31.53.
The RSI measures momentum using the magnitude and speed of price changes. When the reading is below 50.00, momentum is bearish. On the other hand, if the reading is rising, momentum is bullish.
Looking at the current outlook, the bears may continue to pull the price down. If this trend continues, the meme coin may drop to $0.000015.
However, if bulls become dominant or the token becomes oversold, this could change. In this scenario, Shiba Inu price could break above the $0.000026 resistance, and the rally could reach $0.000033.