Shiba Inu Price Drops After Trendline Break: What Investors Should Know

Shiba Inu Price at Risk of Further Decline: Key Indicators

Shiba Inu Price– Shiba Inu’s [SHIB] price has recently broken through its ascending trendline, which had supported its price action since the crash on August 5th. This shift suggests that SHIB may be poised for further declines, potentially even reaching its Q1 2024 lows.

The key trendline that had supported Shiba Inu’s [SHIB] price between $0.00001095 and $0.00003315 has now dipped to the $0.00001160 level. A decline to the $0.00000837 level, the low seen in Q1 2024, appears to be a likely target. The Moving Average Convergence Divergence (MACD) indicator at -0.00000110, with the signal line at -0.00000102, points to ongoing bearish momentum, confirming a downtrend. However, if the MACD line crosses above the signal line and the histogram moves into positive territory, it could suggest a potential reversal.

If the bearish trend continues and the MACD line drops to -0.00000200, with the histogram moving further negative, the downward pressure could intensify, pushing SHIB’s price lower.

How Declining On-Chain Activity Impacts Shiba Inu [SHIB]’s Price

In addition to the technical indicators, Shiba Inu [SHIB] has seen a notable drop in its on-chain activity. The number of active addresses per period has fallen sharply, from over 2,000 in mid-February to a historic low of 501. This decrease in network activity suggests waning user interest and less transaction volume, which could exacerbate the downward trend.

As SHIB’s network utilization dwindles, the coin could face bearish pressure. A reduction in speculative interest can drain liquidity, making Shiba Inu [SHIB] more susceptible to sell-offs. The recent drop in trading volumes reflects a decline in investor demand, which could lead to further price declines.

With a shrinking user base and declining market interest, SHIB’s price could continue to fall unless there is a revival in network usage or new buying activity. Without these factors, the bearish sentiment could persist in the short term.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.