Year-to-date, the price of Shiba Inu (SHIB) has risen approximately 150%, and at certain times, trading volume surged to billions of dollars. However, since December 10, the trading volume of Shiba Inu has sharply declined by $2.8 billion, reflecting a decrease in investor interest in the asset.
In tandem, SHIB's price has dropped by about 10% over the past seven days. This change has raised concerns in the market about whether Shiba Inu will experience a prolonged downturn.
Investor interest has sharply declined.
On December 10, Shiba Inu's trading volume reached $3.58 billion, indicating that market attention towards the coin was at its peak at that time. However, as of the time of writing, SHIB's trading volume has dropped to just $708 million, meaning a significant decrease in market participation.
Generally, a decrease in trading volume is a bearish signal, potentially indicating that investor interest in the asset is waning. If this trend continues, SHIB's price may fall below the support level of $0.000027.
Decreased holding time and increased selling pressure.
According to data from IntoTheBlock, the holding time for Shiba Inu has significantly decreased, indicating that investors are holding their assets for a shorter duration. An increase in holding time is a bullish signal, suggesting that long-term investors are confident in continuing to hold.
However, the decrease in holding time indicates that many short-term investors are beginning to sell their SHIB. If this trend continues, it may create downward pressure on SHIB's price, further weakening market sentiment.
Price trend: Clearly bearish signal.
From the last week of September to December 9, Shiba Inu's price has been trading within an ascending channel, indicating a certain bullish momentum in the market. An ascending channel is a typical bullish chart pattern where prices often fluctuate between upper and lower trend lines, and a breakout above the upper line may lead to further increases.
SHIB has recently fallen below the lower trend line, indicating that the bullish trend has failed, and a price correction may occur in the future.
Price prediction: Downward risks coexist with upward potential.
If the current downward trend continues, the price of Shiba Inu may fall back to $0.000022. If market sentiment further deteriorates and trading volume continues to decline, SHIB's price may drop to $0.000018. However, if market sentiment improves and buying pressure increases, the price could rebound to $0.000033.
Overall, Shiba Inu (SHIB) is facing significant downward pressure recently, particularly due to a noticeable decline in trading volume and a decrease in holding time.
Investors should remain vigilant, paying attention to changes in trading volume and market sentiment to adjust their strategies promptly. If the market lacks sufficient buying support, SHIB may continue to face the risk of price decline.