Shiba Inu (SHIB) has been consolidating above the critical support level of $0.00002093, struggling to break out and post rallies.
While the meme coin shows resilience in holding above support, its inability to sustain upward momentum points to growing challenges. Current indicators suggest a potential worsening of the situation.
Shiba Inu Could Face Correction
Shiba Inu’s Network Value to Transactions (NVT) Ratio has been consistently spiking, signaling possible overvaluation. The ratio measures the relationship between network value and transaction activity. When network value significantly outpaces transactional use, it often indicates that the asset is trading at inflated levels.
The current NVT spike shows that network activity is exceeding transaction volumes, a scenario that typically precedes price corrections. For SHIB, this imbalance highlights the risk of a downward adjustment, making it crucial for investors to monitor this metric closely.
Shiba Inu’s macro momentum is also showing bearish signs, as indicated by the Ichimoku Cloud. Currently, SHIB’s candlesticks remain below the cloud, which has turned red, suggesting sustained selling pressure. This bearish formation limits the potential for a near-term recovery.
The Ichimoku Cloud’s current outlook reinforces the challenges SHIB faces. Unless the candlesticks break above the cloud and reverse the bearish momentum, the meme coin could continue to struggle, leaving it vulnerable to a correction.
SHIB Price Prediction: 21% Crash Ahead?
Shiba Inu’s price is above $0.00002093. However, current indicators suggest SHIB may lose the critical $0.00002093 support level.
If this happens, the price could drop further, breaching $0.00001961 and potentially falling to $0.00001676. This decline would mark a significant 21% loss, eroding the bullish narrative.
On the other hand, if SHIB manages to breach $0.00002341 and flip it into support, the price could rise further. Breaking past the $0.00002606 resistance would invalidate the bearish outlook, reigniting bullish momentum and driving optimism among investors.
The post Shiba Inu’s Struggle to Rally: Bearish Indicators Threaten Further Price Drops appeared first on BeInCrypto.
