As with other cryptocurrencies in the market, the price of Shiba Inu (SHIB) has experienced a double-digit decline over the past 24 hours. This price drop may be related to an increase in the market dominance of SHIB sellers, with buyers being almost invisible.
In this situation, it may be difficult for the SHIB price to record a notable rebound. Other factors may accelerate the decline.
Increased SHIB Selling Pressure... Decreased Network Activity
Two days ago, the price of SHIB was $0.000024. The value of this meme coin has now decreased to $0.000019, in line with the market situation where Bitcoin (BTC) and other altcoins have declined.
According to this analysis, cryptocurrencies are likely to continue declining. The indicators suggesting this bias are the bull and bear indicators. This indicator tracks the activity of addresses that have bought (bull) and sold (bear) 1% of the total trading volume.
When there are more bulls, SHIB's price can come under significant upward pressure. Currently, the increase in SHIB bears suggests that the value of the meme coin may decline below $0.000019 in the short term.
Additionally, network activity is another key indicator suggesting the possibility of further price declines for Shiba Inu. On-chain data from the cryptocurrency online data platform Santiment shows a significant decrease in the number of active addresses associated with the token.
Active addresses measure the number of unique wallets interacting with the cryptocurrency over a given period. An increase in this indicator suggests more wallets are participating in cryptocurrency transactions.
Conversely, a decrease in active addresses, as seen with SHIB, indicates a reduction in interaction with the token, implying a decrease in successful blockchain transactions. This declining activity may reflect a decrease in interest or demand and further supports the possibility of a short-term decrease in SHIB's value.
SHIB Price Prediction: Token Decline to Continue
The last time SHIB attempted to rise in price was on December 11, when the token's value was $0.000029. The Relative Strength Index (RSI) value on the 4-hour chart is 31.53.
RSI uses the magnitude and speed of price changes to measure momentum. A value below 50.00 indicates weak momentum, while an increase in the indicator's value suggests strong momentum.
Considering the current outlook, SHIB bears may continue to pull the price down. If this trend continues, the value of the meme coin could decline to $0.000015.
However, if bulls become dominant or the token enters an oversold state, the situation could change. In this case, SHIB's price could break through the $0.000026 resistance, and the rebound could reach $0.000033.
