Shiba Inu (SHIB) Threatens Another Fall, Here's Why
Date: 2023-07-04 Author: Karina Ziganova Categories: BLOCKCHAIN
Last week, the Shiba Inu meme coin made several unsuccessful attempts to break above the critical resistance level of $0.000008. On-chain metrics indicate that the price of SHIB is at risk of a major correction.
While other meme coins, such as PEPE and FLOKI, have seen double-digit gains, the price of SHIB has stalled below $0.000008. Let's figure out if Shiba Inu is facing another fall.
Long-term investors are losing faith in Shiba Inu
One of the key reasons for the potential price correction of Shiba Inu is a noticeable drop in confidence among long-term token holders. Between June 17 and July 3, the price of SHIB increased by 15%, but the readings of the Mean Coin Age metric decreased by 35% over the same period.
Mean Coin Age calculates the average number of days that coins in circulation have spent at current addresses. When indicator values fall during a price rally, it means that long-term investors are taking profits. If they continue to exit positions, SHIB will face a further fall.
After a two-week uptrend, SHIB looks overbought
The readings of the NVT (Network Value to Transaction) on-chain indicator of the Santiment platform confirm the possibility of an imminent correction. This metric is comparable to the traditional market market price-earnings ratio, where price is market capitalization and profit is the value of the network. Thus, NVT determines the under-/overvaluation of an asset at current price levels.
Between June 22 and July 3, the NVT ratio increased by 385%. This signals that Shina Inu is overvalued and may be at risk of a pullback.
Bears may push Shiba Inu to $0.000006
According to IntoTheBlock, Shiba Inu is likely to fall to $0.000006. 53,800 wallets that bought a total of 21.05 trillion tokens at a minimum price of $0.000007 will provide some support to the asset and slow down the pace of decline.
In case of consolidation above $0.0000085, the initiative will go to the bulls. 14,950 addresses that purchased 31.32 coins at a minimum price of $0.000008 could trigger a rollback. But if they fail, SHIB has every chance of heading towards $0.000014.
