- Shiba Inu (SHIB) experienced a brief pause in its recent 21% decline, trading at around $0.000020 with a slightly increased RSI but remaining in a strong bear trend.
- Despite this, the significant drop in daily active addresses and trading volume indicates insufficient network activity to drive a major price recovery.
The SHIB downtrend paused briefly.
Shiba Inu (SHIB) has been on a relentless downtrend, leaving investors concerned about its future prospects. However, the recent pause in its decline has sparked curiosity: Could this be the beginning of a turnaround, or is it merely a temporary respite before further losses?
SHIB’s Downtrend Takes a Pause
An analysis of Shiba Inu’s price trend reveals that the decline began on June 5th, with the cryptocurrency losing around 21% of its value since then. Despite the sharp drop, SHIB experienced a modest rebound on June 15th, gaining 2.37% and trading at approximately $0.000020. This minor uptick has kept SHIB within a narrow price range, though the overall trend remains bearish.
The Relative Strength Index (RSI) for SHIB also showed a slight increase due to the recent price rise, but it remains firmly in bearish territory with a current reading of around 35. This indicates that, despite the pause, the bear trend is still dominating the market.
A Drop in Shiba Inu’s Address Momentum
The brief halt in SHIB’s downtrend has shifted focus to other metrics, such as daily active addresses, which can provide insight into the network’s activity levels. A closer look at this metric reveals a worrying trend: daily active addresses have been steadily declining over the past few weeks. Between June 11th and 12th, the number of active addresses ranged from 7,000 to 6,000. However, this figure has since dropped to around 2,500 active addresses as of the latest data.
This significant decline in active addresses suggests that there is currently insufficient network activity to drive any major price movement. The drop in daily active addresses mirrors a similar trend in trading volume. Recently, SHIB’s volume was recorded at $180 million, down from over $300 million in the previous trading session and over $400 million before that.
The decrease in volume indicates that investor interest and trading activity are waning, which is unlikely to support a strong price recovery in the near term. For a meaningful turnaround, SHIB would need to see a significant increase in both trading volume and active addresses, signaling renewed investor interest and network activity.
While the pause in Shiba Inu’s decline offers a glimmer of hope, the underlying metrics suggest that a more substantial recovery may not be imminent. Investors should remain cautious and closely monitor these key indicators to gauge SHIB’s potential for a turnaround.
