Shiba Inu Price Risks Decline as SHIB Faces Overvaluation
Shiba Inu(SHIB) has been consolidating above the key support level of $0.00002093, struggling to break through and rebound.
While the meme coin has shown resilience in staying above support, its inability to sustain upward momentum points to growing challenges. Current indicators suggest the situation may worsen.
Shiba Inu can undergo facial correction
Shiba Inu’s Network Value to Transactions (NVT) ratio has been surging, suggesting it may be overvalued. This ratio measures the relationship between network value and transaction activity. When network value significantly exceeds transaction usage, it usually indicates that the asset is being traded at a high level.
The current NVT spike indicates that network activity exceeds transaction volume, which usually occurs before a price correction. for SHIB, this imbalance Highlighting the risk of a downward correction, it is crucial for investors to keep a close eye on this indicator.
The Shiba Inu’s macro momentum is also showing bearish signs, as shown on the Ichimoku chart. Now, SHIB candle holder It remains below the cloud line, which has turned red, indicating continued selling pressure. This bearish formation limits the potential for a near-term recovery.
Ichimoku Cloud’s current prospects exacerbate SHIB’s challenges. Unless the candlestick breaks through the clouds and reverses the bearish momentum, the meme token may continue to struggle, leaving it vulnerable to corrections.
SHIB Price Prediction: A 21% Crash Is Coming?
Shiba Inu price Above $0.00002093. However, current indicators suggest that SHIB may lose the key support level at $0.00002093.
If this happens, the price is likely to drop further above $0.00001961 and possibly drop to $0.00001676. The drop would mark a significant 21% decline, undermining the bullish case.
On the other hand, if SHIB management If $0.00002341 breaks above and turns it into a support level, the price may rise further. A break above the $0.00002606 resistance would invalidate the bearish outlook, reignite the bullish momentum and drive optimism among investors.
Disclaimer
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