According to U.Today, Shiba Inu, a popular cryptocurrency, is currently displaying signs that suggest a potential downward trend in its market value. Several key indicators are showing red flags, indicating that the price of SHIB may be set to decline. However, it's important to note that these on-chain metrics can fluctuate rapidly and the data mentioned was accurate at the time of writing.
The 'Net Network Growth' has seen a decrease of 0.52%, indicating a decline in the number of people joining to use SHIB. This suggests that the network is experiencing more outflows than inflows, with fewer people showing interest in the cryptocurrency. Another concerning metric is the 'In the Money' figure, which stands at -0.64%. This indicates that investors are currently losing money by holding SHIB, making it less appealing as a long-term investment.
The 'Concentration' metric, which measures the distribution of SHIB among its holders, has also decreased by 0.11%. This suggests that the cryptocurrency is less concentrated in the hands of a few large holders, also known as whales. Changes in the amount of control these whales have can significantly impact SHIB's price due to their substantial influence on the market.
The 'Large Transactions' metric, which often represents the activity of whales, has shown a significant decrease of 11.69%. This could suggest a declining interest from these major players. Additionally, there is an imbalance between buy and sell orders, with sell orders currently dominating the market. This overextension of sell orders could exert further downward pressure on SHIB's price, leading to a bearish outlook.
At present, SHIB is trading at approximately $0.00002773. The support level to watch is near the blue line (50 EMA), around $0.00002256, which could act as a safety net if prices drop. The next resistance level is likely the $0.00003 threshold, which serves as a psychological level for the asset's holders.
