In most cases, high activity on the blockchain affects the price of the project’s native token. In the case of Shibainu (SHIB), the data suggests that recent issues may be related to a lack of significant interaction on the network.
On top of that, SHIB also saw a strange spike in one of its key metrics. Through this on-chain analysis, we will understand the short-term potential of the 12th largest cryptocurrency by market capitalization.
Concerns about Shibainu’s Decline in Online Activity
As of press time, BeInCrypto has investigated the Shibainu network for activity, zero balances, and new addresses. According to data from IntotheBlock, these on-chain metrics have all declined over the past seven days.
Active addresses, new addresses, and zero-balance addresses all play a role in understanding user engagement on the network. Shibainu’s significant decline in these metrics indicates a lack of participant activity.
Read more: Shibainu – Beginner’s Guide
This decline in network activity is a bearish sign, as it suggests a lack of appeal and demand for Shibainu. If this trend continues, it may impact SHIB’s price recovery.
Additionally, the Network Value to Transactions (NVT) ratio has surged at an alarming rate, indicating that the network may be undervalued and inefficient in handling transaction volumes.
SHIB Price Prediction: Will Bulls Capitulate?
Looking at the daily chart, SHIB is currently trading at $0.000015, down from its recent high of $0.000020. The technical oscillator (AO) has entered negative territory, indicating downside momentum.
If the AO rating continues to decline, it is likely that the price of SHIB will also decrease, possibly reaching $0.000012. However, the Money Flow Index (MFI) shows conflicting signals, suggesting potential capital inflows into SHIB.
If market participants continue to buy the dip and the MFI trend remains positive, there is a chance for SHIB’s price to increase and retest $0.000019 in the coming days.
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In addition, part of the content is the AI translation version of the English version of the BeInCrypto article.
