- Shiba Inu (SHIB) faces a significant setback, with prices diving by 10%, thus impeding its recovery efforts.
- A drop in network growth and growing investor losses are signaling a bearish outlook for SHIB.
The Shiba Inu (SHIB) token’s recovery mission encountered a formidable hurdle as its price took a sharp 10% fall this Wednesday. As investors scramble and reallocate funds away from meme and alternative cryptocurrencies, questions loom large on SHIB’s future trajectory amidst a likely bearish outlook.
— 𝐋𝐔𝐂𝐈𝐄 (@LucieSHIB) June 14, 2023
The recent rise in market volatility has seen a capital flight from meme coins and altcoins, including Shiba Inu (SHIB), which has been adversely affected. This market trend, coupled with a 10% price adjustment, has hindered SHIB’s efforts to attract new users this week, potentially signaling a more bearish play.
According to Santiment data, SHIB has been finding it challenging to draw new demand. A Glassnode chart underscores this issue, showing a drop in the creation of new addresses in the Shiba Inu Network Growth since June 11. In fact, from June 11 to June 14, it plummeted by 133%, indicating a steep decline in network growth – an important metric that assesses the user acquisition rate of a blockchain network.
The ongoing Securities and Exchange Commission (SEC) crackdown seems to influence investors’ shift away from meme coins like SHIB towards Bitcoin and other mega-cap altcoins. This trend could extend SHIB’s bearish run if it persists.
Adding to SHIB’s challenges, an escalating Network Valuation to Transaction Volumes ratio indicates further bearish days for the token. The NVT ratio is an essential indicator used by investors to compare a network’s market valuation with its native token’s transaction volume. SHIB’s NVT ratio spiked nearly 550% between June 10 and June 14, suggesting the token might be overvalued.
IntoTheBlock’s In/Out of the Money Around Price distribution data suggests a gloomy picture for SHIB, with over 90% of its holders currently in a net-loss position. This overwhelming bearish trend could result in a further price drop towards $0.000005 in the forthcoming weeks.
Despite the looming bearish scenario, the bulls can still swing the narrative if SHIB’s price ascends above $0.000007. Yet, this potential rally could face significant resistance from the 20,000 addresses holding 8.07 trillion tokens at that price range. If that resistance level collapses, bullish investors could still steer the rally toward $0.000013.