Shiba Inu On-Chain Metrics Lack Bullish Behavior: A Deep Dive
Is Shiba Inu (SHIB) poised for a fall? Despite a 12% weekly uptick that saw SHIB break above a descending triangle, signaling potential bullish momentum, a closer look at Shiba Inu\'s on-chain metrics paints a bearish picture overall. While analysts remain bullish about the memecoin’s future due to fundamental developments, the underlying data suggests caution.
Key Bearish Indicators for SHIB
Several on-chain metrics suggest a lack of sustained bullish behavior for Shiba Inu. Here\'s a breakdown:
- Weak Net Network Growth: Net network growth is weak at just 0.27%, signaling minimal new activity or adoption. This lack of new participants suggests limited organic growth and potential for sustained downward pressure.
- "In the Money" Concerns: The “in the money” metric... [Data from IntoTheBlocklarge holders netflow to be precise in the last 24 hours, inflows and outflows into the wallets holding no less than] ... raises questions about profitability and potentially increased selling pressure from holders looking to recoup investments.
- Whale Activity Declining: Shiba Inu’s price swings reveal quick gains and sharp reversals, while on-chain data shows whales reducing exposure, hinting at short-term bearish pressure. With Bitcoin’s price [Hace 4 días Shiba Inu failed to break $0. & now trades sideways near $0], and Whale inflows dropped 83% in 30 days [💸 Outflows also down 80% 🪫 Liquidity drying up = bearish], this reduction in whale activity further contributes to bearish sentiment.
Mixed Signals and Shifting Investor Sentiment
The recent downturn in the Shiba Inu market highlights shifting investor sentiments, with bearish trends gaining traction amidst fluctuations in on-chain activities. Even though the Money Flow Index (MFI) may suggest otherwise, the broader on-chain data tells a different story. SHIB Shiba Inu (SHIB) is at risk of further price declines based on several on-chain metrics, signaling a bearish sentiment in the ecosystem. This could no doubt present a setback for the meme coin.
Conclusion: Proceed with Caution
While Shiba Inu has shown mixed performance recently, the on-chain metrics indicate a lack of strong bullish support. Investors should carefully consider these factors before making any decisions regarding SHIB. The potential for quick gains remains, but so does the risk of sharp reversals. Further analysis is crucial to accurately determine Shiba Inu\'s future trajectory.