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Shiba Inu (SHIB) price is turning bearish as user acquisition decreases

Shiba Inu (SHIB) price recovery mission suffered a major setback this week after another 10% drop on Wednesday. With panicked investors turning away from the memcoin market, is SHIB preparing for an even more bearish outlook in the coming weeks?

Cryptocurrency investors have reallocated capital away from memecoins and altcoins in response to the recent surge in market volatility. Shiba Inu (SHIB) price was one of the hardest hit by this trend.

In addition to the 10% price correction, Shiba Inu has struggled to attract new users this week. IS SHIB SET TO PLAY MORE TALL DOWN?

Shiba Inu is losing market share

according to the data he provided Santifrom himSHIB has been struggling to attract new order since this week. The Glassnode chart below shows that new addresses created on Shiba Inu Network Growth have been in decline since June 11th.

Specifically, between June 11 and June 14, it decreased by 133% from 3,838 to 1,646 new wallet addresses.

Shiba Inu (Sheep) Bearish Price, June 2023 – network growth. source: glass

Network Growth evaluates the acquisition rate of users of the blockchain network by summarizing the new wallet addresses that are generated daily. As noted above, it often affects the price negatively when network growth Fall down persistently.

As the SEC campaign heats up. It appears that investors are reallocating capital away from memecoins like SHIB towards Bitcoin and other more flexible large-cap cryptocurrencies.

Unless this trend reverses, the ongoing downtrend in SHIB may continue in the coming weeks.

The value of the Shiba Inu network is deteriorating

Moreover, the high proportion Network evaluation of transaction volumes Indicates more bearish days for SHIB price. Essentially, the NVT ratio compares the network’s market valuation to the volume of transactions involving its native token.

According to the glass chart below, SHIB has been losing momentum since June 10th. Between June 10th and June 14th, the SHIB NVT ratio increased nearly 550% from 35.29 to 229.56.

Shiba Inu (Sheep) Bearish in Price, June 2023 - Network Growth
Shiba Inu (Sheep) Bearish in Price, June 2023 – Network Growth. source: glass

In general, the NVT ratio is used by strategic investors to assess the relationship between a cryptocurrency’s market capitalization and the level of underlying transaction activity. When the NVT ratio is rising, it indicates that the asset is currently overvalued.

Hence, this 1,600% increase in NVT adds credence to the growing bearish concerns that SHIB may be due to further price correction.

SHIB Price Prediction: Price reversal to $0.000005 on the cards

According to IntoTheBlock’s In/out money Araand the price Distribution data, over 90% of Shiba Inu holders are now in a net loss position. The overwhelming downtrend means that SHIB is likely to enter another downtrend towards $0.000005 in the coming weeks.

Currently, 14,430 addresses that bought 930 billion SHIB tokens are expected to provide significant support when the price approaches the breakeven region at $0.000006 from the middle range.

However, if this support folds as expected, Shiba Inu price is likely to drop to $0.000005.

Shiba Inu (SHIB) price predictions.  June 2023, break-even price date -
Shiba Inu (SHIB) price predictions. June 2023 Parity Price History – Source: IntoTheBlock

However, the bulls could invalidate this bearish narrative if Chip price rises above $0.000007. However, as we saw above, some of the 20,000 addresses with 8.07 trillion tokens in this price range could be significant resistance.

But if this resistance level does not hold, the Shiba Inu bull could ride higher towards $0.000013.

Disclaimer

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 providing 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.

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