- Shiba Inu’s price remains within a narrow range over the past two months, edging towards its lower limits.
- Network activity for Shiba Inu is steady, with one particular metric hinting at a potential upward trend.
- Despite a recent retest of its support levels, Shiba Inu experienced a significant price drop but is slowly recovering.
Shiba Inu witnesses significant price volatility – Is there a rebound on the horizon?
Ongoing Range Formation Indicates Market Hesitation
On June 3rd, Shiba Inu was trading around $0.0000244, which previously acted as a mid-range support. However, recent market activities have pushed the price below this support level, with further declines towards $0.000022 or $0.0000205 appearing imminent.
The On-Balance Volume (OBV) attempted to breach a six-week high in late May but failed, highlighting weak buying pressure. This failure aligns with bearish predictions for the short term, signaling that Shiba Inu might experience another 9%-13% price drop.
Investor Activity and Sentiment: A Mixed Signal
The Mean Dollar Invested Age (MDIA) metric, reflective of the age of tokens held, showed a steady increase until it was disrupted at the end of May. This disruption indicates a potential short-term bullish trend if the decline in this metric continues, suggesting that recent token holders might be preparing to sell, anticipating future price increases.
Further analysis reveals that daily active addresses for Shiba Inu have remained stable over the last two months, yet the weighted sentiment has turned negative, hinting at caution among investors. Considering these aspects, Shiba Inu is projected to drop towards its range lows before potentially rebounding to around $0.000028.
Conclusion
In summary, Shiba Inu’s short-term outlook shows bearish tendencies due to recent support level breaches and weak buying pressures. However, underlying metrics suggest that a price rebound could be on the horizon if network activity and investor behavior evolve favorably. Investors should stay attentive to these indicators for informed decision-making.
