Shiba Inu (SHIB) Price Could See Another 20% Decline – Here’s Why

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In Brief

  • Shiba Inu price has already lost two major support levels and is now moving further below.
  • Investors have already begun backing out, as evidenced by the plunge in the network growth.
  • Short-term investors added another 23 trillion SHIB to their holding, increasing the bearish impact on the price.

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.

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.

Shiba Inu (SHIB) Price Could See Another 20% Decline – Here’s Why
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 (SHIB) Price Could See Another 20% Decline – Here’s Why
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.

Shiba Inu (SHIB) Price Could See Another 20% Decline – Here’s Why
SHIB/USDT 1-day chart. Source: TradingView

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.

This article is sourced from the internet: Shiba Inu (SHIB) Price Could See Another 20% Decline – Here’s Why

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