SHIB Faces Potential Downturn Amid Rising Selling Pressure and Declining Network Activity

The recent decline in Shiba Inu (SHIB) has raised concerns about its future, with key metrics indicating potential bearish trends.

• Critical observations reveal a significant drop in SHIBs price and active user engagement, which suggests dwindling interest from investors.
• “The combination of a high influx of tokens to exchanges and plummeting transaction volumes portsends a challenging period ahead for SHIB,” says a CryptoQuant analyst.

Diving Deeper into SHIBs Declining Activity

Shiba Inu has recently experienced a marked decrease in activity, with token transfers plummeting by as much as 79.55% over the past 24 hours. This alarming trend raises questions about the ongoing viability of SHIB as a viable investment option. In conjunction, the active wallet addresses plummeted by 33.68%, suggesting a substantial reduction in user engagement and a potential lack of interest among traders.

Exchange Reserves Indicate Rising Selling Pressure

Despite these declines in transaction activity, SHIBs exchange reserves have surged to a new weekly high, indicating an influx of tokens being made available for sale. This pattern usually signals heightened selling pressure, as more holders are likely preparing to offload their assets. Observations from recent analytics show that increased reserves are typically correlated with bearish sentiment in the market.

Source: CryptoQuant

Technical Analysis and Key Price Benchmarks

From a technical perspective, Shiba Inus price remains under pressure, with current trading testing significant support at the $0.00001223 level. If this critical support fails to hold, SHIB risks declining to further levels of $0.00001095. This critical threshold showcases potential demand zones, but a failure here could lead to deeper losses.

Currently, with the stochastic RSI indicating overbought conditions, opportunities for a reversal seem increasingly limited. Market participants must navigate carefully, as ongoing selling pressure could prevent any meaningful recovery.

Source: TradingView

Ultimately, Shiba Inu‘s trajectory will depend heavily on market dynamics and participant reactions to these technical levels. A resurgence in buying activity at critical levels could serve as a catalyst for recovery; however, ongoing selling momentum raises significant risks for investors. Interested traders should keep a close watch on the identified support areas as potential indicators for SHIB’s imminent market direction.