- Next SHIB price may be below $0.00002
- However, if bullish momentum picks up, memecoin may trade above $0.00003.
A Shiba Inu Evaluation [SHIB] The price movements on the 3-day chart have revealed the formation of a descending triangle. A descending triangle forms when the price of an asset is bounded between the support and resistance lines, forming a triangular shape on the chart.
The price of an asset can fall below support and continue its decline or break out of the triangle and start an uptrend.
What’s next for SHIB?
AMBCrypto readings of SHIB’s Fibonacci retracement revealed that if the bears put more downward pressure on its price and it breaks below support, the memecoin price could fall further by 18% to trade at a low of $0.000018.
This decline seems possible as the currency continues to see a drop in demand. According
Feelings According to the data, SHIB daily active addresses observed on a 30-day moving average revealed a 56% decline in the daily count of addresses involved in SHIB transactions over the past month.
Likewise, new demand for memecoin has plummeted. In fact, according to the on-chain data provider, the number of new addresses created to trade SHIB daily fell by 51% during the same period.
A decrease in the number of active addresses trading an asset is usually a precursor to low trading volume. When this decline is persistent, downward pressure on the asset price increases.
The forecast drop below $0.0002 is possible if SHIB continues to record a decline in its demand.
Read Shiba Inu (SHIB) Price Prediction 2024-25
Additionally, SHIB’s high market value to realized value (MVRV) ratio puts it at risk of increased selling pressure. This metric measures the relationship between the current market price of an asset and the average price of each coin or token purchased for that asset.
At the time of this publication, SHIB’s MVRV ratio was 38.28% and heading north. When an asset’s MVRV ratio is positive in this way, the asset is considered overvalued. This means that a significant number of asset holders are “in the money,” triggering the need to sell and lock in profits.
However, despite the drop in SHIB value, bullish sentiment has resurfaced among market participants lately. Weighted currency sentiment, for example, was positive at press time and has been since April 30.
If this bullish sentiment persists, SHIB price could break its current pattern in an uptrend to trade at $0.00003 on the charts.
Next: Cardano OVERCOMES this altcoin chart: Good news for ADA holders?
This is an automatic translation of our English version.
