Tough times may be ahead for Shiba Inu, analysts warn. Based on on-chain indicators, they conclude that the Shiba Inu (SHIB) price is in trouble.
The popular memecoin has been going through a volatile period in the past few weeks, and this could continue. The SHIB price is struggling to stay above the crucial $0.000014 level, which experts say is a cause for concern. Should we prepare for a further drop in the Shiba Inu price?
A crucial border
The SHIB price has seen some serious fluctuations over the past week. Last weekend, the popular memecoin was trading at $0.0000155, but last Monday, the price crashed to $0.000011, a drop of 30% in just a few days.
Since then, the price has recovered somewhat and is currently trading at $0.00001389. However, the resistance at the $0.000014 level remains a tough barrier for SHIB to break through definitively.
52 percent of investors in the red
A deeper analysis of the memecoin’s on-chain data confirms the possibility of bearish price action for Shiba Inu. It turns out that a significant number of investors are currently incurring losses, with 52% of investors seeing their positions in the red. This situation may increase pressure on investors to sell, driven by their disappointment with SHIB’s recent price performance.
Stagnant network growth and decline in activity
Unfortunately, there is more bad Shiba Inu news. The growth of the Shiba Inu network remains limited. According to data from IntoTheBlock, network growth has actually decreased by 0.31%, indicating that the platform is struggling to grow its user base.
This limited growth could have a lasting impact on the memecoin’s price, as demand for the underlying coin may decrease. Furthermore, the number of large transactions on the SHIB network is decreasing, indicating that existing users are also becoming less active.
Source: https://newsbit.nl/bearish-signalen-voor-shiba-inu-koers-is-een-crash-onvermijdelijk/
