Shiba Inu (SHIB) is expected to appreciate by 150% in 2024. However, between December 10 and 16, the memecoin's trading volume decreased by US$2.80 billion.
This move coincides with the 10% drop recorded last week. In this sense, will SHIB experience a prolonged decline?
Interest in Shiba Inu falls from last week’s highs
On December 10, Shiba Inu’s trading volume was $3.58 billion. Typically, an increase in volume indicates growing investor interest and increased market liquidity. In most cases, this is seen as a good sign. Therefore, it was not surprising that the increase in volume coincided with the memecoin’s price recovery to $0.000030.
However, by press time, the volume had dropped to $708 million, suggesting less investor interaction with SHIB. Therefore, if the metric continues to decline, the price could fall below $0.000027 in the near term.
Volume from Shiba Inu. Source: Santiment
Additionally, data from IntoTheBlock reveals a significant drop in Coin Holding Time, which tracks how long a cryptocurrency is held without being traded or sold.
An increase in this metric signals long-term holding, a typically bullish sign. On the other hand, the recent decline indicates that many short-term holders have started selling their holdings. If this trend continues, it could put selling pressure on SHIB’s value.
Shiba Inu Coin Holding Time. Source: IntoTheBlock
Price prediction
Between the last week of September and December 9, SHIB traded inside an ascending channel. This is a chart pattern defined by two ascending trend lines, representing resistance at the top and support at the bottom.
When a coin rises above the upper and lower trend lines, its price may increase. However, for SHIB, the daily chart shows that it has fallen below the lower trend line. This indicates that the uptrend has been invalidated and a prolonged correction may occur.
Shiba Inu Chart on TradingView
If this is the case, the value of the memecoin could drop to $0.000022. In a highly pessimistic scenario, with trading volume falling again, the price could reach $0.000018.
However, if buying pressure increases, this could change and the memecoin could rise to $0.000033.
The post Shiba Inu (SHIB) Drops in Volume and Price: What’s Next? appeared first on BeInCrypto.
