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An analyst projects an additional 20% decline for Shiba Inu, arguing that it remains in a descending channel with no breakout signals.
Shiba Inu (SHIB) continues to experience market volatility, reflecting a fluctuating price trend over the past day. SHIB is trading around $0.0000122, with a marginal 24-hour decline of 0.1%.
The token has struggled to gain momentum recently. It declined 9.2% in the past seven days, 16.8% over 14 days, and 25.4% in the last 30 days. This sustained downward trajectory highlights continued selling pressure. While some are anticipating a rebound, an analyst is predicting further decline.
Shiba Inu Could Dip Another 20%
A 12-hour SHIB/USDT chart from TradingView presents a downward trend, reinforced by technical indicators. The chart shows that Shiba Inu is within a descending channel characterized by lower highs and lower lows.
According to the analyst, market signals do not suggest a breakout, leaving SHIB vulnerable to further declines. The analyst observes a lack of momentum and expects a continued downturn unless strong reversal signals emerge.
A key target in this downtrend is $0.0000090, a critical monthly support level that could determine SHIB’s near-term price direction. This represents a 20% fall from the time of the analysis.
Meanwhile, network data and on-chain activity reinforce the bearish outlook. Fewer investors are engaging with SHIB, further reducing demand and liquidity.
Declining Network Activity and Whale Inflows
On-chain metrics from IntoTheBlock reveal a decline in ecosystem engagement. The 7-day new addresses (NA) dropped by 8.23%, indicating fewer new investors entering the SHIB market. Additionally, the 7-day active addresses (AA) fell by 11.95%, suggesting reduced transactional activity.
The 7-day Zero Balance Addresses (ZBA) Change showed a significant 25.34% drop, indicating more wallets are becoming inactive or being drained. This suggests declining investor interest and weaker overall market participation.
The Large Holders Inflow chart further reflects a reduced presence of institutional and whale investors. The 7-day whale inflow dropped 64.05%, while the 30-day inflow saw an 88.65% decline.
The 90-day inflow decrease of 87.12% further indicates an extended period of large-scale investor exits, contributing to SHIB’s ongoing bearish trend.