Will Shiba Inu (SHIB) Drop Down to $0.000018?

Shiba Inu (SHIB), one of the most popular memecoins, is currently facing a challenging period. Recent data suggests that SHIB’s price could continue to fall, potentially reaching $0.000018. This article examines the factors contributing to this outlook, analyzes key market indicators, and explores the future prospects for SHIB.

Current Market Performance

Shiba Inu has experienced a significant decline over the past week, with its price dropping by 10.69%. As of now, SHIB is trading at approximately $0.000020. This recent downturn has sparked concerns among investors and analysts about the memecoin’s future direction.

Key Metrics and Indicators

Several on-chain metrics suggest that SHIB’s price may continue to fall. One crucial metric is the Network Value to Transactions (NVT) Ratio, which indicates that SHIB’s network might be overvalued. A high NVT Ratio suggests that the market cap of SHIB is growing faster than its transfer volume, often coinciding with market tops. Currently, SHIB’s NVT Ratio has increased from 24.58 on June 11 to 86.80, supporting the thesis of potential overvaluation.

Additionally, the Exchange Net Position Change metric shows a positive value, indicating that the supply of SHIB available for sale has increased. Specifically, the Exchange Net Position Change was at a positive sum of 1.13 trillion SHIB, implying that a significant number of tokens are ready for sale. This could put downward pressure on SHIB’s price if selling continues.

Technical Analysis and Market Sentiment

Analyzing SHIB’s technical indicators reveals a bearish trend. The price of SHIB has been struggling to maintain support levels, and the recent drop suggests further declines may be imminent. The Global In/Out of Money indicator, which measures the profitability of addresses holding SHIB, shows that the memecoin faces resistance between $0.000020 and $0.000023. With only 1,720 addresses purchasing 452.80 billion SHIB at $0.000019, compared to 100,530 addresses accumulating 66.75 trillion SHIB at $0.000023, the resistance at higher levels is substantial.

Market sentiment around SHIB is also cautious. Investors are wary of further declines, and the increased supply of SHIB on exchanges suggests that many holders are prepared to sell. This bearish sentiment is reflected in the price action, with SHIB struggling to find strong support levels.

Future Prospects for SHIB

Looking ahead, the future of Shiba Inu will depend on several factors. For SHIB to recover and avoid further declines, it will need to see increased buying interest and positive market sentiment. The broader cryptocurrency market trends will also play a significant role. If the overall market sentiment improves, SHIB could benefit from a general bullish trend.

However, the current indicators suggest that SHIB might face rough days ahead. The potential for the price to drop to $0.000018 is real, given the overvaluation signals and increased supply on exchanges. Investors should closely monitor key support levels and market trends to make informed decisions.

Conclusion

Shiba Inu is facing a challenging period, with significant bearish signals and potential for further price declines. The current market indicators suggest that SHIB might drop to $0.000018 if the bearish trend continues. However, the long-term prospects of SHIB will depend on its ability to attract renewed investor interest and positive market sentiment. As the cryptocurrency market evolves, staying informed about key metrics and trends will be crucial for navigating the volatile landscape of memecoins like SHIB.