The Shiba Inu price has collapsed by 8% since it was hovering near $0.000012 on April 16. The recent industry-wide cryptocurrency patch appears to be rippling through the Shiba Inu ecosystem. Can the demand zone at $0.000010 stop the bears?
Shib Inu (SHIB) may soon see an imminent downturn. On-chain data indicates that SHIB holders are preparing for more selling in the coming days.
SHIB holders are approaching the critical profit-taking zone
SHIB’s 30-day market value to realized value (MVRV) ratio, which assesses owners’ short-term profit or loss, is currently approaching potential sell territory. With most stockholders receiving 6.87% of the dividend, the MVRV ratio is approaching high-stakes territory.
Looking back on February 15th, the 7% gain area previously peaked in SHIB’s local top formation. If the pattern repeats, cryptocurrency investors can expect the price of SHIB to drop in the coming days.
Likewise, the slowdown in the rate of new user acquisition on the Shiba Inu network is another major cause of bearish concerns.
According to data provided by Santiment, there has been a 41% decrease in the growth of the Shiba Inu network since the beginning of March. From 2,473 addresses registered on March 1, the number of new wallets has dropped to 1,473 as of April 19.
Slowing network growth often indicates that the Shiba Inu ecosystem may be losing market share to other meme coins. And if the trend continues, SHIB may struggle to find a new order to push the price out of the impending downtrend.
Shiba Inu price forecast: strong support at $0.000009
IntoTheBlock’s break-even price distribution provides data-driven information which indicates that SHIB is likely to lose its current support at $0.000011. Although the 38,000 addresses that bought 77 trillion SHIB coins in that region could spark a fight.
But, if the bearish scenario plays out, SHIB holders can expect the price to drop towards $0.000009. Here, 343,000 addresses containing 150 trillion SHIBs can stop the slack
However, the bulls may nullify the bearish market sentiment if SHIB rice can measure the $0.000012 resistance area. But as noted above, the 38,000 addresses containing 77 trillion tokens are likely to slow the bullish momentum.
But if it can break this resistance area, the Shiba Inu could continue rising towards $0.000017.
In line with 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 and unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult with a professional before making any financial decisions.