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With its market capitalization currently falling below the $8 billion mark, Shiba Inu has suffered yet another serious setback. The meme coin's prospects appear bleak as it attempts to regain traction on a market that is lacking purchasing interest, as indicated by this significant support breach.
SHIB has hardly seen any new inflows, according to the on-chain data that has been made available, and the general state of the market has not been favorable for its recovery. SHIB recorded 48 large transactions in the previous day, a significant decrease from the seven-day peak of 134 large transactions that was observed a few days prior.
Additionally, the amount of SHIB that is transferred in these transactions has drastically decreased from a peak of 3.52 trillion to just 1.12 trillion SHIB tokens handled. Whales and large holders who usually play a major role in driving price movements on the cryptocurrency market are signaling a loss of confidence in the market with this consistent decline in transaction volume and frequency.
The negative outlook is further confirmed by the Shiba Inu price chart. The asset's price is stuck around the $0.000013 level, trapped in a protracted downtrend. The 200 exponential moving average, or EMA, has served as a notable barrier, and SHIB has not been able to break above it.
Arman ShirinyanThis indicates that strong selling pressure is likely to be encountered by any attempt at a recovery. Indicating a lack of momentum to drive prices higher, the RSI is likewise still low. This problem is exacerbated by the general sentiment of the market. Further downside risks are more likely now that SHIB has virtually no new buying support.
Short-term struggles for SHIB could persist in the absence of a noticeable inflow of fresh capital or rekindled interest from major stakeholders. To determine whether there may be a turnaround, investors should monitor important indicators like market capitalization and sizable transactions.
Denys Serhiichuk
Gamza Khanzadaev