Shiba Inu (SHIB) Price May Drop a Further 20%

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Shiba Inu (SHIB) Price Could See Another 20% Decline – Here’s Why
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The Shiba Inu (SHIB) price downtrend is expected to extend beyond the current 30% as the meme coin is losing the backup it had gained over the past few weeks.

The likely outcome is another 20% plunge on the daily chart, but if SHIB bounces back from a crucial support level, it could recover.

Shiba Inu Price Fall Continues

Shiba Inu price is trading at $0.00002542 at the time of writing, after the meme coin failed to reclaim the support of $0.00002800. The increasing bearishness is due to the broader market bearish cues triggered by the decline in Bitcoin price.

SHIB investors are likely going to extend this decline not by doing something but by actually not doing anything. The minimal activity from Shiba Inu holders is a crucial reason for the lack of support for price action.

Tokenmetrics

New investors are completely pulling away from the second-biggest meme token in the world, as evidenced by the network growth. This metric is used to measure the traction of an asset, essentially the rate at which new addresses are created. A decline in the same suggests Shiba Inu is losing traction with every passing day.

Read More: Shiba Inu (SHIB) Price Prediction 2024/2025/2030

Shiba Inu Network Growth. Source: Santiment

Secondly, a chunk of the supply just moved into the hands of short-term holders. These holders tend to hold their assets for less than a month, making them vulnerable to sudden selling. Over the past four days, more than 23 trillion SHIB worth $582 million moved into these wallets, increasing the potential of corrections due to profit-taking.

Shiba Inu Supply Distribution.
Shiba Inu Supply Distribution. Source: IntoTheBlock

SHIB Price Prediction: Another Day, Another Dip

By the looks of it, Shiba Inu’s price will likely witness a decline to $0.00002268, a level tested as both resistance and support in the past. But much stronger support lies at $0.00002039, as this price coincides with the 100-day EMA. 

Chances of Shiba Inu price correction halting are likely at this level, which would mark a 20% correction.

SHIB/USDT 1-day chart.
SHIB/USDT 1-day chart. Source: TradingView

Read More: Dogecoin (DOGE) vs Shiba Inu (SHIB): What’s the Difference?

On the other hand, the 100-day EMA could act as the support level from where SHIB bounces back. If the meme coin changes the direction in which the price moves from this point, it could climb back toward the resistance at $0.00002835. Breaching this would invalidate the bearish thesis.

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.



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