Shiba Inu (SHIB) Faces Critical Challenges: 4 Bearish Signals Impacting Price

• Shiba Inu (SHIB) coin is showing worrying signs to its investors, especially in the short term, with notable downward trends in its price movements.
• Despite not being the worst performers, both Dogecoin (DOGE) and Shiba Inu saw a weekly decline of over 7% amidst a general downturn in meme coins.
• According to CoinGecko, in the last 30 days, SHIB has experienced a decrease of approximately 22%, highlighting significant risks for investors.

Discover why Shiba Inu (SHIB) is encountering significant downward pressure, with key signals suggesting further declines in its future.

SHIB’s Recent Price Trajectory

In the past week, the meme coin sector has witnessed a broad decline, with SHIB being no exception. Both DOGE and SHIB recorded notable weekly losses, with the latter shedding over 22% in the past month. This substantial dip is alarming for investors, signaling potential longer-term issues with the coin’s valuation.

Analyzing Transaction Volume and Network Growth

Beyond the sharp price decline, SHIB’s trading volume has also significantly diminished. However, this isn’t the most pressing concern. On-chain data from IntoTheBlock reveals several critical indicators pointing toward further short-term price drops. The overarching market sentiment towards SHIB remains predominantly bearish, with only one of six indicators providing a positive outlook.

Concerning Signals: Network Expansion and Investor Profitability

One of the most striking negative signals from IntoTheBlock is the decline in SHIB’s network growth. The Net Network Growth indicator, which gauges the token’s underlying network expansion, has dropped by 0.19%. This downturn raises questions about Shiba Inu’s future growth prospects. Additionally, the percentage of profitable SHIB investors has dwindled, with only 45% currently in profit, reflecting the broader market’s struggles.

Decline in Large Transactions

The metric tracking significant transactions, indicative of whale activity, has also seen a decline. In the past 24 hours, there has been an 11% drop in large transactions, suggesting dwindling interest among substantial investors. This reduction in whale activity is considered a bearish sign for the overall market sentiment.

Conclusion

Recent analyses point to several negative trends surrounding Shiba Inu, from reducing transaction volumes to slowing network growth and decreasing whale activity. These factors cumulatively enhance the likelihood of further declines in SHIB’s value in the short term. Investors should remain vigilant and consider these signals seriously when making future decisions, particularly given the inherent volatility of the cryptocurrency market.