Shiba Inu, a cryptocurrency that has gained significant attention due to its rapid market growth, is currently exhibiting certain key metrics that are in the red zone. These metrics could potentially indicate a forthcoming downward reversal in SHIB's price movement. It's important to note that on-chain metrics are subject to change at any moment and the following observations were captured at the time of this analysis.
Initially, the "Net Network Growth" has seen a decline of 0.52%. This metric reflects whether more users are joining the SHIB network or leaving it. Presently, the data suggests a decrease in interest, with more outflows than inflows into the network.
Next, the "In the Money" metric stands at -0.64%, indicating that investors are experiencing losses by holding SHIB. This unfavorable return on investment makes SHIB less appealing for long-term investment positions.
Moreover, the "Concentration" metric has dropped by 0.11%, implying that SHIB is no longer dominated by a small group of large holders (whales). Changes in whale influence can significantly impact SHIB's price due to their substantial market control.
Furthermore, the "Large Transactions" metric displays a significant 11.69% decrease. These transactions often reflect whale activity, suggesting a decline in interest or participation from major players in the market.
Lastly, the imbalance between buy and sell orders, with sell orders surpassing buy orders, indicates a market sentiment favoring sales. This imbalance could potentially lead to downward pressure on SHIB's price movement, resulting in a bearish market sentiment.
Currently, SHIB is trading around $0.00002773, with a support level near the 50 EMA blue line at $0.00002256, potentially acting as a price floor if there is a downturn. The next significant resistance level is likely at the $0.00003 mark, a psychological threshold for SHIB holders to watch closely.
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