Last week, June 17-23, did not bring anything positive to Shiba Inu. The dog-themed meme coin has dropped as much as 15% in value. At press time, SHIB is trading around the $0.000017 level.
Shiba Inu's recent drop below $0.00002 signals a potential further decline, but bulls may still recover. Maintaining above $0.000019 is crucial to avoid more selling pressure.
In the meantime, a rise to $0.000022 or $0.000023 would indicate renewed bullish momentum and could attract more buyers.
On-chain data
Overall on-chain data shows mostly bearish signals. However, several indicators look positive, such as the Large Transactions metric, with a 5.49% increase.
Fifty-two percent of SHIB holders were making money at the prevailing price at press time, which shows a rather positive view from investors. However, 46% of holders out of money is still a major problem for Shiba Inu.
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Technical analysis
The Moving Average Convergence Divergence (MACD) indicator shows minor fluctuations around the zero line, indicating a lack of strong momentum. Recently, a slight positive divergence in the MACD, moving above the signal line, suggests a subtle shift toward bullish momentum.
Despite this, the Simple Moving Average (0.00001860) indicates strong selling pressure. On the contrary, the Relative Strength Index (RSI) at 27 suggests that SHIB might recover this week.
Last week, Ali Martinez highlighted that the TD Sequential chart shows a buy signal, indicating potential positive momentum for Shiba Inu in the coming days.
#ShibaInu might be primed for a rebound as the TD Sequential indicates a buy signal on the $SHIB daily chart! pic.twitter.com/jwZ3UbJQ1N
— Ali (@ali_charts) June 15, 2024
Meanwhile, a major Shiba Inu metric, the burn rate, has demonstrated an impressive 530% increase over the past 24 hours. Last week saw a 530% increase in the burn rate, with a total of 37,534,163 meme coins transferred to unspendable blockchain addresses.
On Saturday, Shiba Inu (SHIB) experienced a remarkable 2,682% surge in its daily burn rate. The token is now trading in the crucial range of 416 trillion SHIB.
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According to IntoTheBlock, 416.38 trillion SHIB were bought by 19,120 addresses in the range between $0.000017 and $0.000018 at an average price of $0.000018.
Watching BTC and ETH
The performance of major cryptocurrencies like Bitcoin and Ethereum often influence the overall crypto market. If these leading assets are experiencing volatility or downward trends, it might be challenging for altcoins like SHIB to gain traction.
The SHIB/BTC correlation has reached 0.84, while the correlation with ETH is at 0.94.
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The Bitcoin price has seen a sharp decline over the weekend,dropping below the $63,000 level for the first time in months. Some experts speculate that the decline was primarily caused by a short-term sell-off tied to the German government.
According to Arkham, a wallet linked to the German government transferred 6,500 BTC to exchanges on June 19, worth $425 million at the time. The price continued to decline on Sunday, which indicates that the drop might be due to fundamentals. According to Arkham, the German government is still selling.
UPDATE: German Government Still Selling BTC > $195M So Far.In the past 2 hours, the German Government sent $65M in BTC to 2 likely exchange deposits including Coinbase.The German Government moved $600M BTC yesterday, sending $130M BTC to 4 likely exchange deposits including… pic.twitter.com/in2urlDBE0
— Arkham (@ArkhamIntel) June 20, 2024
The uncertainty on stock markets might be due to concerns among investors, who view Bitcoin and Ethereum as a risk asset.
Whether BTC price rebounds this week or not, SHIB and other major meme coins will probably follow the general market sentiment.
