An analyst projects an additional 20% decline for Shiba Inu, arguing that it remains in a descending channel with no breakout signals.
Shiba Inu (SHIB) continues to experience market volatility, reflecting a fluctuating price trend over the past day. SHIB is trading around $0.0000122, with a marginal 24-hour decline of 0.1%.
The token has struggled to gain momentum recently. It declined 9.2% in the past seven days, 16.8% over 14 days, and 25.4% in the last 30 days. This sustained downward trajectory highlights continued selling pressure. While some are anticipating a rebound, an analyst is predicting further decline.
Shiba Inu Could Dip Another 20%
A 12-hour SHIB/USDT chart from TradingView presents a downward trend, reinforced by technical indicators. The chart shows that Shiba Inu is within a descending channel characterized by lower highs and lower lows.
According to the analyst, market signals do not suggest a breakout, leaving SHIB vulnerable to further declines. The analyst observes a lack of momentum and expects a continued downturn unless strong reversal signals emerge.
A key target in this downtrend is $0.0000090, a critical monthly support level that could determine SHIB’s near-term price direction. This represents a 20% fall from the time of the analysis.
Meanwhile, network data and on-chain activity reinforce the bearish outlook. Fewer investors are engaging with SHIB, further reducing demand and liquidity.
Declining Network Activity and Whale Inflows
On-chain metrics from IntoTheBlock reveal a decline in ecosystem engagement. The 7-day new addresses (NA) dropped by 8.23%, indicating fewer new investors entering the SHIB market. Additionally, the 7-day active addresses (AA) fell by 11.95%, suggesting reduced transactional activity.
The 7-day Zero Balance Addresses (ZBA) Change showed a significant 25.34% drop, indicating more wallets are becoming inactive or being drained. This suggests declining investor interest and weaker overall market participation.
The Large Holders Inflow chart further reflects a reduced presence of institutional and whale investors. The 7-day whale inflow dropped 64.05%, while the 30-day inflow saw an 88.65% decline.
The 90-day inflow decrease of 87.12% further indicates an extended period of large-scale investor exits, contributing to SHIB’s ongoing bearish trend.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
