Sheba Inu (SHIB), the popular satirical cryptocurrency known as the canine meme, has seen a 44% drop in price over the past 90 days. This trend raises fears that Chiba Inu will face a further downturn, which could trap her in the poor performance known as the ‘September pullback’.
These on-chain analyses, published on BeinCrypto, explore the opportunity for additional declines and their potential impact on SHIB holders.
Chiba Inu indicators point to low probability of recovery
An assessment of Chiba Innu’s price performance reveals that the last time the currency posted monthly gains was in May. Since June, the situation has changed, with some market participants suggesting that the broader market may be in a downward phase.
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Although some holders may be hoping for better performance this month, the ratio of network market capitalization to transactions (NVT) suggests that the odds are slim. In addition, historical data from the Taurus market for 2021 shows that September was usually a quiet or bearish month for SHIB.
The NVT ratio measures how fast a cryptocurrency’s market capitalization grows compared to the volume of transactions on its network. If the volume of transactions is higher than the market capitalization, this may indicate that the cryptocurrency is undervalued.
For SHIB, the NVT ratio has suddenly risen, suggesting that market capitalization is growing faster than the value traded on the network. This suggests that investors may be overvaluing SHIB as a high-yielding asset. However, this can lead to an unsustainable bubble, leading to another price pullback.
In addition, the net influx of large carriers of SHIB has decreased by 163% over the past seven days. This indicator measures the difference between the amount bought and sold by addresses that hold more than 1% of the circulating supply of the currency.
A high large carrier net flow index usually indicates that more SHIB is being bought than sold, which can lead to an increase in price. However, for SHIB, the opposite happens.
The percentage of SHIB holders currently facing a loss is 44%. If this trend continues, the currency could face a sharper correction, which could push 50% of its holders into the red.
SHIB Price Forecast: A Deeper Decline in the Future
On the daily chart, traders on the SHIB rally appear to be in a position to prevent further declines, as they seek to maintain support at $0.000012. However, the technical composition remains bearish, suggesting that defending this area may be difficult.
In addition, the Chiken Money Flow Index (CMF) for SHIB entered negative territory. A higher CMF indicates more aggregation, but a decline, as in the case of SHIB, indicates an increased distribution, which means selling more coins instead of buying them.
The current SHIB price is $0.000013, trading below the 20-day (blue) and 50-day (yellow) exponential moving averages. Trading below these moving averages is a bearish signal, suggesting that SHIB may continue to fall if these trends continue.
If the situation continues, the SHIB price could drop to $0.000010 by the end of September. On the other hand, to achieve a bullish reversal, buyers will need to push the price above the 20-day EMA. If successful, SHIB may be able to retest the 38.2% Fibonacci level, which could push the price to $0.000017 and even to $0.000020.
**Attention: This article is written for informational purposes only. It is not intended to encourage the purchase of any asset, nor is it considered a solicitation, offer, recommendation or proposal for investment. We would like to remind you that each asset is evaluated from multiple perspectives and its risks are high, so any investment decision and the risks associated with it belong to the investor. We also do not provide any investment advisory services.
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