- SHIB recorded a hike of over 2% in the last 24 hours
Most metrics and indicators hinted at a price correction though
As an experienced analyst, I would caution against reading too much into short-term price movements in the highly volatile crypto market. While SHIB recorded a 2% hike in the last 24 hours, which might seem like a bullish sign at first glance, it’s essential to consider other metrics and indicators that suggest a potential price correction.
In the past few hours, the market situation has shifted, enabling a number of cryptocurrencies, including Shiba Inu (SHIB), to become bullish. This development appeared hopeful, but at this moment, bearish trends were dominating SHIB’s price graphs.
Bears stake their claim on SHIB
Based on CoinMarketCap’s data, SHIB experienced a significant surge in value, increasing by more than 2% within the last 24 hours. Currently, its price stands at $0.00002348 and boasts a market capitalization surpassing $13.8 billion, positioning it as the eleventh largest cryptocurrency.
Despite the recent price increase, there was an unexpected rise in pessimistic views towards SHIB.
Last week, I observed a decrease in the weighted sentiment of the memecoin, indicating a shift in public perception towards it. Additionally, the social volume surrounding this digital asset saw a decline, suggesting that its popularity had waned.
Regrettably, the worries surrounding SHIB are far from being resolved. Based on AMBCrypto’s assessment of Shiba Inu’s daily chart, there appears to be a descending triangle formation. This pattern is generally considered bearish and tends to lead to price decreases once the support line gets breached.
Is a price decline inevitable?
According to AMBCrypto’s interpretation of Hyblock Capital’s findings, a potential decline in SHIB‘s price could lead it to a significant support point around $0.000020. Should this occur, the number of forced sales or liquidations would likely surge at that price mark.
If a fall in price causes a memcoin to be grouped with other insignificant assets, its value could potentially drop to as low as $0.000015.
I analyzed Santiment’s data to gain insights into the memecoin’s metrics. According to my assessment, Shiba Inu’s NVT ratio experienced a significant surge. An increase in this ratio indicates that the asset may be overvalued, suggesting a potential price decline.
Last week, there was a significant surge in the number of SHIB memcoins entering trading platforms through transactions, indicating a heightened demand to sell. Conversely, the MVRV (Maker’s Realized Value to Market Ratio) showed bullish signs as it improved over the recent past.
Some market signals continued to indicate bearish trends for Shiba Inu. For instance, the Chaikin Money Flow (CMF) experienced a significant decrease. Furthermore, its Relative Strength Index (RSI), with a reading of 45.5, was situated below the neutral threshold.
Read Shiba Inu’s [SHIB] Price Prediction 2023-24
These indicators suggested that a price drop is likely in the coming days.
It’s important to mention that the Money Flow Index (MFI) showed a bullish sign by increasing on the graph.
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2024-05-10 16:08