Like many other cryptocurrencies on the market, the price of Shiba Inu (SHIB) has seen a double-digit drop in the past 24 hours. This price drop may stem from an increase in selling pressure from SHIB, while the buying market seems to have retreated.
Against this backdrop, achieving a significant recovery in SHIB prices could prove challenging. Several other factors could also spur further declines.
Shiba Inu Selling Pressure Increases, Network Activity Decreases
Two days ago, SHIB price was 0.000024 USD. At the time of writing, the value of this Meme Coin has dropped to 0.000019 USD, in line with the general market situation, as Bitcoin (BTC) and other altcoins are falling in price.
According to this analysis, it is possible that the cryptocurrency will continue to decline in price. One indicator that shows this trend is the Bulls and Bears indicator. This indicator tracks the activity of buying (bull) and selling (bear) addresses of 1% of total trading volume.
When cow numbers are higher, SHIB prices could come under significant upward pressure. At the moment, the number of SHIB bears has increased, suggesting that the value of Meme Coin could fall below 0.000019 USD in the short term.
Additionally, online activity is another important indicator that points to the possibility of Shiba Inu prices falling further. Blockchain data from Santiment reveals a significant decrease in active addresses related to this token.
Active addresses measure the number of unique wallets participating in transactions in a given period of time. When this index increases, it shows an increase in participation, as more wallets are making transactions with cryptocurrencies.
Conversely, a decline in active addresses as seen with SHIB indicates a decrease in engagement with this token, signifying a decrease in successful Blockchain transactions. This tapering in activity may reflect a decline in interest or demand, and reinforces the possibility that SHIB’s value will decline in the near term.
SHIB Price Forecast: Token Continues to Decline
The last time SHIB price attempted to move higher was on December 11. At that time, the value of the Token was 0.000029 USD. On the 4-hour chart, the RSI reached 31.53.
RSI measures momentum using the size and rate of price change. When the index is below 50.00, the momentum is bearish. On the contrary, if this index increases, the motivation is increasing.
Considering the current scenario, SHIB may continue to be dragged down by bears. If this trend continues, the value of Meme Coin could drop to 0.000015 USD.
However, if the bulls become dominant or the Token becomes oversold, the situation could change. In that situation, SHIB’s price could surpass the resistance at $0.000026, and the upside momentum could reach $0.000033.