Is SHIB in trouble as bears refuse to give up?

26 February 2024

in SHIBA

Reading Time: 6 mins read

Shiba Inu’s price was continuously touching lower highs.
Investors were not actively trading SHIB at press time.

Shiba Inu [SHIB] has been disappointing its investors for quite some time as its price failed to rise. To add to the trouble, the meme coin’s price has been touching lower highs, which is a typical bearish signal.

Will this new week bring a change to this trend?

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Shiba Inu’s troubles are far from over

SHIB’s value did not move up in the last seven days, as its weekly chart was red.

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According to CoinMarketCap, at the time of writing, SHIB was trading at $0.000009634 with a market capitalization of over $5.6 billion.

However, if the token manages to break past this resistance zone, investors might witness a bull rally, with the first target of 0.000022.

Source: X

To better understand whether a bull rally could take place, AMBCrypto delved deeper into SHIB’s press time state.

As per our analysis of Glassnode’s data, SHIB’s Network Value to Transactions (NVT) ratio registered a sharp uptick over the last few days.

A rise in the metric generally indicates that an asset is overvalued, hinting at a price correction. SHIB’s number of non-zero addresses also dropped slightly last week, indicating a sell-off.

Source: Glassnode

Upon closer inspection, AMBCrypto found that investors’ interest in trading Shiba Inu remained low last week. This was evident from the flat Supply on Exchanges and Supply outside of Exchanges.

The meme coin also failed to gain whale attention, as its supply held by top addresses remained unchanged in the last seven days.

Source: Santiment

The aforementioned metrics looked bearish and suggested that the possibility of SHIB initiating a bull rally was slim. So, AMBCrypto took a look at SHIB’s technical indicators as well.

Read Shiba Inu’s [SHIB] Price Prediction 2024-25

Notably, SHIB’s MACD displayed a bearish crossover, and its Relative Strength Index (RSI) registered a downtick, indicating that the token’s price might plummet further.

If this trajectory continues, then SHIB might plummet to its support level of $0.0000088.