Shiba Inu (SHIB) Price Analysis

SHIB’s price broke the ascending trendline that had held its price action since the crash on 5 August.

Altcoin’s active account numbers per period dropped while the number of new transactions has been flat since mid-February.

Shiba Inu’s (SHIB) price broke the ascending trendline that had supported its price action since the crash on 5 August. As a result, the second largest memecoin could be poised for more dips, potentially reaching its Q1 2024 lows.

The uptrend line, which sustained the price between $0.00001095 and $0.00003315, has fallen to the current $0.00001160 level. The prior low of $0.00000837 from Q1 2024 remains a likely downside target.

The MACD line at -0.00000110, the signal line at -0.00000102, and the histogram at -0.00000008 all indicate bearish momentum. The MACD line staying below the signal line confirms the downtrend.

If the MACD line rises above the signal line toward +0.00000100, with the histogram shifting into the positive zone, it could suggest a potential reversal. Conversely, a bearish scenario could occur if the MACD drops to -0.00000200, with the histogram moving to -0.00000015, indicating ongoing downward pressure.

A fall to the Q1 2024 low of $0.00000837 might trigger panic selling, pushing the price lower. However, a rebound from this level could raise the price to $0.00002100 to test the broken trendline, assuming improved buying interest.

Impact of Declining On-Chain Activity on SHIB’s Price

Shiba Inu has also experienced a decline in active addresses from over 2,000 in mid-February to a historic low of 501. This decline signifies reduced user engagement, decreased transaction activity, and a growing disinterest in the network.

SHIB could encounter bearish pressure if dwindling network utilization diminishes speculative interest. If this trend continues, it may lead to sell-offs due to lowered liquidity. Without new developments or renewed bullish sentiment, bearish sentiment might intensify, driving prices down in the short term.

Additionally, the number of new transactions has plummeted from over 4.6 million to just 44,913, marking an all-time low.

Stagnant trading volumes reflect declining demand among investors. Such updates can diminish liquidity, allowing prices to fall more easily. A reduced use case equates to lower trading volumes, suggesting that SHIB is becoming less appealing to investors and traders.

This waning interest may lead to increased sell-offs, as holders grow disillusioned. Without new network activity or bullish momentum, SHIB’s price is likely to continue to decline.