Shiba Inu Coin Price Risks Another 40% Fall If This Happens
Highlights
- SHIB active addresses drop by 62.4% to 18.64k while holders count losses.
- Newly created addresses, supporting ecosystem growth dive to 8,400 after topping 21,000.
- A 40% drop in Shiba Inu Coin price could test support at $0.000015.
Shiba Inu Coin price is quickly erasing the gains it had accrued since Q4 last year as meme coins tumble harder than other cryptocurrencies. The second-largest dog-themed token, worth $15 billion in market capitalization, lost 19% of its value in seven days on top of 28% in a fortnight to $0.0000255 on Wednesday.
If the trading volume continues to drop underpinning shrinking interest among investors, Shiba Inu’s recovery will be significantly suppressed.
Shiba Inu Coin Price Analysis: Navigating Potential 40% Dive
SHIB had exploded to $0.00004563 by March 5, as it responded to Bitcoin’s persistent rally above $73,000. This price increase spread to other meme coins like Pepe Coin (PEPE) which already hit a new record high.
Dogecoin, the largest meme coin, currently a top ten crypto, climbed above $0.2 reflecting a high risk appetite among traders. Like Shiba Inu Coin, DOGE is down to $0.1352, representing a 35% drop from the recent high.
If the downturn in prices presses on, the meme coin hype in Q4 and Q1 could come down fast.
Shiba Inu Coin currently hovers between two key levels that are likely to determine the direction the token takes after consolidating. On the upside, the 20-day Exponential Moving Average (EMA) (the line in blue) at $0.0000265 prevents further movement toward $0.00003 while the 200-day EMA (the purple line) at $0.00002348 holds as support.
SHIB must stick above the 200-day EMA support, otherwise, the notably compromised technical structure could worsen culminating in more losses.
Based on the Relative Strength Index (RSI), the path of least resistance leans downwards as long as the RSI stays below the descending trendline resistance.
To be on the safe side, away from the glaring influence of the sellers, SHIB must climb above the 20-day EMA to validate the trend reversal. Still, staying below two key moving averages signals a bearish bias.
Bulls must approach with enough determination to convince traders to seek exposure to longs thus accentuating Shiba Inu Coin for another breakout to $0.00003 and 2024’s highest level of $0.00004558.
Can Shiba Inu Be Saved Amid Dwindling Network Activity
The downtrend in Shiba Inu has left many wounded and this could explain the massive drop in network activity. Blockchain data by IntoTheBlock reveals a 62.4% slump in active addresses from 49.53k to 18.64k from March 5.
A 60% drop in the number of newly created addresses mirrors the correction in price. Should the pullback continue, SHIB might fail to build the momentum to sustain an uptrend during its potential recovery phase.
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