After delivering a negative 13% performance in March, Shiba Inu stock (SHIB) is down another 5% since the beginning of April. On-chain analysis reveals how scarcity of whale transactions and slowing network growth can lead to further price declines. Where will SHIB find support?

The Shiba Inu kicked off the year 2023 with a highly publicized token burning plan. Heading into the second quarter, investors seem unconvinced of the deflationary impact of the burn on price action. After a swing performance in March, the second-largest memecoin by market cap is still flashing bearish signals on-chain.

Folding Shiba Inu whales

According to data analytics provided by Santiment, Shiba Inu whales have been significantly adjusting their commercial activity in recent weeks. The chart below shows that the number of large transactions involving SHIB has been declining since the year-to-date market high in February.

Since February 5, the number of Shiba Inu Large transactions has decreased by 94% from 583 to 35 dismal transactions as of April 12.

Large transaction metrics track the number of daily transactions of $100,000 and above on the blockchain network. The continued decline could mean that large institutional investors are losing confidence in SHIB’s short-term price prospects.

Likewise, the downward trend in new user acquisition for the Shiba Inu network is another potential cause for concern among investors.

According to data collected by Santiment, Shiba Inu have seen a 65% drop in new wallet addresses created since the last local spike. Between February 4 and April 12, Shiba Inu network growth slumped from 4,575 to 1,581 new addresses.

Network growth measures the total number of new wallet addresses that are created per day on the blockchain network. A continued decline could mean that the SHIB meme coin is losing market share and traction.

In short, if whale transactions and network growth metrics continue to decline, SHIB holders can expect more price volatility.

SHIB Price Prediction: Path to $0.000009

Turning to the Break Even price distribution data, the Shiba Inu token could soon reach $0.000009 if the bearish outlook continues.

The bears could watch the bulls if SHIB fails to hold its current support at $0.000011. Although supporting 58,000 addresses with 32 trillion tokens will try to support the price.

If this support line breaks, SHIB could drop towards $0.000009, where 298,000 addresses holding 140 trillion tokens can hold.

However, the bulls can take responsibility if the SHIB price breaks above $0.000012. A group of 58,000 tie-breaker addresses containing 32 trillion symbols in this region may be looking to make some money.

However, if the Shiba Inu expands this area, the price could rally towards $0.000017. However, the most important resistance of 287,000 addresses containing 532 trillion tokens could definitely get in the way.