Shiba Inu Plummets 21% Amidst Crypto Downturn
In A Nutshell
The cryptocurrency market has witnessed a notable downturn, with Shiba Inu (SHIB) experiencing a significant 21% slide in its value. Nonetheless, a pause in this downward trend has emerged, prompting speculation on potential recovery indicators. This analysis delves into SHIB’s price movements, active addresses, and trading volumes to gauge the potential for a market turnaround.
Deciphering Shiba Inu’s Market Pause
Recent data reveals that Shiba Inu’s price decline, initiating on June 5, briefly halted with a modest 2.37% increase in its value on June 15. Despite this slight recovery, the overall bearish sentiment prevails, as evidenced by the cryptocurrency’s Relative Strength Index (RSI) hovering around 35, a figure typically associated with a strong bearish trend.
Understanding the Impact of Active Addresses
The number of daily active addresses is a critical metric for assessing network activity and potential price movements. Analysis reveals a consistent decrease in Shiba Inu’s active addresses, dropping to approximately 2,500 recently. This decline in network activity suggests a reduced engagement among holders and users, possibly contributing to the ongoing bearish market sentiment.
Volume Analysis: A Closer Look
Parallel to the decrease in active addresses, Shiba Inu’s trading volume has also experienced a downturn. From over $400 million in previous sessions to around $180 million currently, this reduced volume indicates a lack of significant market movements and buyer interest, potentially stifling any immediate recovery in SHIB’s value.
Our Take
While Shiba Inu’s recent pause in its downtrend offers a glimmer of hope to investors, the accompanying metrics of active addresses and trading volumes paint a more cautious picture. The reduced network activity and trading volume suggest that a substantial recovery might require more than a temporary halt in price decline. Investors should continue to monitor these indicators closely, as they offer valuable insights into the market’s sentiment and the potential for future price movements. Amidst this, the broader market conditions and investor sentiment will play pivotal roles in determining SHIB’s path forward.
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Sources:
– TradingView
– Santiment
