Shiba Inu (SHIB) Sees Decline in Average Transaction Size and Bearish Indicators
The Shiba Inu (SHIB) price has experienced a significant decline, with the average transaction size dropping by 50% over the past two weeks. This decrease in transaction size suggests a potential shift in investor sentiment towards Shiba Inu, signaling a possible reassessment of the wider market. In addition, SHIB’s technical indicators, such as an overbought RSI and bearish EMAs, further indicate upcoming corrections. These factors raise questions about SHIB’s ability to sustain its recent bullish momentum.
Average Transaction Size Is Declining
Examining SHIB’s Average Transaction Size over the past month reveals an interesting trend. From February 21 to March 6, the average transaction size grew from $10,139 to $42,491, representing a 319.08% increase in just two weeks. During this period, SHIB’s price also rose from $0.000009 to $0.000034, a growth of 277.78%. These metrics appear to be correlated during the recent bull run.
However, after reaching its peak, the average transaction size started to decline rapidly. It dropped from $49,816 on March 11 to $22,824 on March 21, a decrease of -54.18%. Similarly, SHIB’s price also decreased from $0.000033 to $0.000027 during this period, representing an -18.18% drop.
Given the correlation between these metrics in recent months, it is possible that the gap between the significant drop in average transaction size and the price correction may be closed in the coming days, potentially leading to further drops in SHIB prices.
SHIB RSI Is Still In The Overbought Stage
Despite the recent price correction, the SHIB Relative Strength Index (RSI) remains high at 81, indicating a potential bearish momentum. An RSI value above 70 suggests that an asset may have experienced excessive buying activity and could be overvalued. This could pave the way for a downward adjustment in SHIB’s price.
The RSI serves as a crucial tool in technical analysis, measuring the speed and change of price movements within a range of 0 to 100. SHIB’s RSI progression from 88 on March 11 to 81 on March 21 indicates a modest reduction in buying momentum but still keeps it within the overbought territory. Traditionally, this condition is seen as a bearish indicator, suggesting that the asset has been under significant buying pressure that may not be sustainable over time. Consequently, there is an expectation for SHIB’s price to potentially decline as the market adjusts to these dynamics.
SHIB Price Prediction: Will SHIB Hold The $0.000023 Support?
The Exponential Moving Average (EMA) lines for SHIB present an interesting scenario in their price movement. The short-term EMA lines are approaching a crossover below the long-term EMA lines, which is a significant technical indicator suggesting a potential bearish momentum. If this trend continues, it could lead to a decline in SHIB’s price.
The close proximity of the EMA lines to each other and to the current price line indicates a lack of strong momentum in either direction, indicating market uncertainty. When the EMA lines hover near the current price, it often signifies a consolidation phase, where the price can break out in either direction depending on market sentiment and upcoming developments.
Monitoring these indicators is crucial as they can help identify trend directions and potential reversals. Currently, SHIB’s price is $0.000026, slightly above the $0.000023 support. If this support level is broken, the next support could be at $0.000020. On the other hand, if the trend reverses, SHIB might challenge the $0.000034 resistance and potentially reach $0.000038.
Hot Take: SHIB Faces Bearish Indicators and Market Reassessment
The recent decline in SHIB’s average transaction size and the presence of bearish indicators like an overbought RSI and bearish EMAs suggest that SHIB may face challenges in maintaining its bullish momentum. Investor sentiment towards Shiba Inu seems to be changing, leading to a possible reassessment of the wider market.
While these indicators do not guarantee future price movements, they provide valuable insights into the current state of SHIB’s market dynamics. It is important for crypto investors to stay informed about these factors and monitor any developments that could impact SHIB’s price.
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