The trading index of Shiba Inu (SHIB), often dubbed as the “Dogecoin assasin,” appears to be embroiled in a period of uncertain volatility. Market watchers stand at the anticipation of a bullish resurgence and the opposing bearish investors, an unpredictable tug-of-war grappling the currency’s future. The currency’s technical chart and comprehensive on-chain data engagement have got analysts examining every minute fluctuation to prognosticate its seemingly unpredictable course.
Currently, SHIB’s trading graph indicates an incipient descending triangle over a three-day trading period. This customary formation generally symbolizes potential for a dip in value, with the financial asset being pinched between converging support and resistance thresholds. As a result, SHIB’s stakeholders are perplexed if the imminent drift will be a plunge below the support line indicating a further dip, or the currency will circumnavigate its gravitational pull and puncture the triangle to stimulate a bullish market.
Disturbingly, for those who’ve placed their faith in SHIB’s upward drift, there’s an indication of a substantial ebb in demand for the memecoin. A disconcerting slump marked by a drastic 50% downslide in the daily users over the previous monh, as per the data provided by Santiment. This downward trend signifies a contraction in the user base and hints towards a potential dip in trading volume, which could further invigorate the price decline.
Adding to the financial chilly winds, the currency has noted a steep plummet in new traders taking a swing at the SHIB wheel. The decline is marked by an alarming 51% fall in the daily inception of trading addresses for the memecoin within the same duration. This alarming drought of financial infusion might just accentuate the selling pressure for SHIB.
Even with its current trading price lingering at around $0.000024, alarm bells have been set off by SHIB’s Market Value to Realized Value (MVRV) ratio. This fiscal scale subjugates the current market price to the average acquisition tag of all the SHIB tokens. With the MVRV ratio soaring at a commanding 38%, this could imply a potential overvaluation of the asset that might trigger stakeholders to bank their profits, catalyzing a sell-off.
But not all is grim within the SHIB’s financial corridors. Despite the predominant bearish sentiment, a ray of hope shines through. An unexpected positivity has cast a favorable light in the market perception index, giving way to an underlying optimism. This could possibly reflect in a price breakout, contravening the pessimistic implications of the descending triangle.
The continuity of this newfound optimism could potentially steer SHIB towards an unforeseen price upswing, potentially touching the $0.00003 mark. A change that could bring about a sigh of relief for those investors who’ve held their ground witnessing the recent price lull.
However, the Fibonacci retracement mechanism also signals that the memecoin’s trading value could stumble an additional 15% downwards to $0.000018. This is providing that the bearish influence prevails and perpetuates a downward trend. This prognosis has sounded off caution for SHIB investors, flagging plausible repercussions of a bearish breakthrough.
