Shiba Inu Can’t Bark Again
Shiba Inu dropped by double digits over the last week, just like many altcoins available on the market as appetite for risk moderated considerably. Recent price action highlighted that it may be challenging for the meme asset to recover swiftly in such circumstances.
Shiba Inu peaked at $0.000034 and then experienced a sharp decline to $0.000021. This decline, which amounts to a significant market correction, signifies a dramatic slowdown following a stretch of robust growth. The sudden change in direction coincides with a period when the token’s momentum appeared driven by optimism regarding Shiba Inu ecosystem initiatives.
Recent market fundamentals suggest that cryptocurrency asset’s drop will likely continue amid a hawkish Fed narrative. The Bulls and Bears indicator currently affirms this bias. The latter monitors the activity of addresses that have recently made purchases (bulls) and sales (bears). The SHIB price may be under a lot of upward pressure when there are more buyers. But the number of bears has been growing recently. The meme coin’s value may fall below the $0.00002 support line.
Another important sign that suggests a possible further drop in the price of Shiba Inu is network activity. The number of active addresses linked to the token has significantly decreased, according to Santiment’s on-chain data. Active addresses count the number of distinct wallets using cryptocurrency during a specific time frame.
Increased engagement is another bearish sign here. The reason for this is that more wallets are taking part in cryptocurrency transactions. On the other hand, as seen with SHIB, a decline in active addresses signifies less engagement with the token, which translates into fewer successful blockchain transactions. SHIB’s value will likely drop shortly because this declining activity indicates declining demand.
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