On-Chain Metrics Hints Shiba Inu (SHIB) Price Might Plunge To $0.00000976 In

Shiba Inu had been showing a bearish trend over the previous few weeks, but it just reversed the trend and attempted to show a positive one this month. The coin is clearly displaying a fresh trend and a brief uptrend.

As a result of the bears rejecting the infamous meme coin from the 8-day simple moving average, the Shiba Inu price is currently bidding at $0.00001204. Despite the fact that the bullish countertrend rally is still ongoing, a few underlying factors point to a negative foothold.

The number of daily active addresses for the SHIBA coin has significantly increased recently, according to Santiment’s Daily Active Addresses. Whales may be onboarding their SHIB tokens to exchanges with plans to sell them shortly, based on the tiny increase from 4,600 to the current reading of 6,200.

Dormant tokens hit peak

The first week of August saw a significant influx of dormant tokens hitting the market, which also affected the SHIB price. The indicator showed a rapid transfer of 130 million tokens that had not been moved in the previous two years. This is a highly alarming warning because, statistically, increases in the number of tokens in circulation typically lead to sharp declines in the value of cryptocurrencies.

Last but not least, the price of Shiba Inu has increased across all social media channels. This can be seen as a negative indicator because social dominance performance nearly doubled over the summer compared to the spring.

In conclusion, the price of Shiba Inu might trigger a catastrophic fall. The liquidity under the July 13 low at $0.00000976 stands a good likelihood of being breached based on technical and on-chain measures.

If $0.00001700 is breached, the bearish premise is refuted. The next Shiba bull run, with targets in the $0.00002400 region and a 100% increase from the present market value, could be sparked if the bulls can break through this level.